Learn more here about how to account for dividend income in My Plan

When you create an after-tax account with the capital gains tax treatment, you'll be asked to enter your dividend yield. By default, dividends will be reinvested which will increase the balance and the cost basis of the account in your plan projections. They will also be assumed to be qualified dividends meaning any associated capital gains tax will be included in your capital gains tax modeling each year as per IRS regulations. If you want to model not reinvesting your dividends and rather taking them as income, see below for details.

Navigate to My Plan > Income > Passive Income. Press Add Passive Income and enter the monthly income you anticipate from dividends. The Planner will tax this income stream at your ordinary income tax rate. We plan to develop a feature for qualified dividend income at a later date.

If you are withdrawing your dividends to fund expenses and using this method, do not enter a dividend yield in the account dialogue.