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Do Americans have to pay taxes on mutual fund returns annually?
Mostcurious
As to the investment in the fund, you would only pay a tax upon selling your shares, like any other investment. Same with any diidends they pay.
However, many times, because of how funds work, gains they have made through the year are passed through to the current shareholders and are taxable to them, (because the fund is not taxed on them). You know by how the returns you get are shown on the year end 1099.
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∙ 15y ago
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