Tax handling of dividends distributed as cash vs reinvested dividends

[frog]

In my current situation, mutual funds in both my Roth IRA and taxable account are distributing their dividends as cash. The reason I elected for this instead of automatically re-investing the dividends is so that I can choose where to reinvest the dividend cash in order to help rebalance my asset allocation. My question is, is there a difference on taxation of dividends that are distributed as cash vs automatically reinvested into the originating fund? I recognize that the taxation of dividends doesn't matter for my Roth IRA since everything grows tax-free.

Just to clarify, I'm not asking about the difference in taxation between "qualified" dividends and "non-qualified" dividends. My understanding is that qualified dividends are subject to long-term capital gains tax and non-qualified dividends are subject to ordinary income tax.

[Zaphod]

It doesnt make a difference. A dividend is always given as cash, and then sometimes reinvested per your choice, which is separate and not reported as part of the taxes (until later as a basis). So the fact you've elected to not reinvest doesnt matter as the distribution of the cash dividend is all they see. There are a few programs that give scrip or actual shares instead of cash, but this is rare.

Just got done doing all my 1099-b's, etc...what a pain. Next year likely to be much worse.

[The White Coat Investor]

No difference. Same tax bill. I do what you do for what it's worth.

[Kamban]

No difference for tax purposes.

Unlike others here, I automatically reinvest dividends from socks and mutual funds unless the charge to reivest the dividends i shigh ( in case of stocks). I do this since I am a procrastinator and will sit on the cash dividends for a long time if left to me.

[frog]

Got it, thanks everyone for the responses.

The White Coat Investor wrote:

No difference. Same tax bill. I do what you do for what it’s worth.

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Actually it is nice to know how you handle things, thanks for commenting.