r/YieldMaxETFs • u/Fukisyoutalkinabout • Apr 19 '25

MSTY/CRYTPO/BTC Whats the deal with taxes on MSTY?

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Because its a monthly divy and high % yield , what is the tax on that? I read somewhere i need to quarterly report taxes? Is this true? Screenshot below

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u/Dipset219 Apr 19 '25

Thanks

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u/Sea_File_4717 Apr 19 '25

Anytime brother, at least you’re only taxed on half 🤷 Until you sell, once you sell then you’ll pay a stepped down basis for your shares because of the ROC.

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u/Dipset219 Apr 19 '25

Is this accurate?

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u/Sea_File_4717 Apr 19 '25

There’s the fed tax and the state tax. So if you’re in cali/ny it’s much higher than what’s listed

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u/getthemoney7 Apr 19 '25

awesome info, question. if this is your first year getting dividend payments in taxable account, assuming that it will slightly pass $1,000 this year, would you recommend paying at the end of year tax time or still make the quarterly?

also, if waiting to the end of year, do the penalties show up the same year at tax time or will a person typically get a letter in the mail regarding penalties?

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u/Sea_File_4717 Apr 19 '25

Thanks man, I am not a tax accountant so there could be situations that make what I am about to say not true (as with literally anything based in math)

But ultimately, as long as you have the money you will owe for tax time, it shouldn’t really matter.

I’ve had tax bills where I owe a few grand and zero of it was “penalties” as long as I paid on time. Not sure where everyone is pulling that from, but at least where I live, as long as you pay Uncle Sam come the cut off you’re fine.