Is there any way to know before EoY what an ETF will distribute as long vs short term dividends?
FlyingCantaloupe
Member Posts: 1 Newcomer
If I'm holding something like an S&P 500 index ETF, do I just have to accept that I will get an unknown amount of distributions with unknown tax treatment?
Answers
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Hello FlyingCanaloupe!
Welcome to FreeTaxUSA!
There are a couple of things you can do to help give you an idea of what your dividends will be. Look at the ETF's dividend history over the past year to get an idea of its distribution patterns.
Additionally, ETFs are required to provide an EoY report that includes information about their dividend distributions. You can check this report for details on the EoY dividend payout.
While it can be tricky to anticipate the taxation of your dividends, using these tools can help!
