Why am I taxed on mutual fund distributions paid in January 2009?
Unlike dividends from individual securities, which are typically taxed in the year the dividends are paid, mutual fund distributions are usually taxed based on the record date of the distribution. For example, mutual fund distributions declared as payable to shareholders of record in December 2008, and paid in January 2009, are taxed as 2008 distributions and reported on Form 1099–DIV.
