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nominee dividend

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Financial Dictionary

Nominee Dividend

A dividend that a person receives on behalf of someone else. If you pass the dividends on to another person, then you must file a Form 1099-DIV to get a dividend adjustment and thereby reduce your taxable dividend interest.

Investopedia Commentary

In this case, the person you nominate to receive the dividend would be taxed.

See also: Dividend, Interest, Nominee Interest

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