Common Stock
For federal income tax purposes, dividend income is reported based on which date?
Payable date = when you receive (and report) the dividend income.
Complete Analysis & Legal Rationale
For tax reporting purposes, dividend income is recognized in the year it is received, which is determined by the payable date (the date the dividend is actually paid to shareholders).
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
The declaration date is when the dividend is announced, not when it is taxable.
The ex-date determines who is entitled to receive the dividend, not when it is taxed.
The record date determines ownership for dividend eligibility, not tax timing.
Matches the verified teaching point in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.