Taxable Accounts: Individual and Joint With taxable investment accounts, you generally owe taxes each year on the dividends and other distributions paid to you that year. You may also owe taxes when you sell shares, depending on whether or not you’ve realized capital gains on the investment. Taxation of Dividends Most ETFs pay dividends, which are reported on your Form 1099-DIV. These are generally taxable, typically at your ordinary marginal tax rate (0-37%, Federal). For high earners, an ...