Taxes, IRAs, Drips, and Savings Accounts  Teens and Their Money
By Selena Maranjian  The last article introduced you to several
kinds of investment accounts. There are a few more options you
should know about, though, and some things to keep in mind, such
as taxes.   If you've been working a part-time or summer job and
have been drawing a paycheck, you'll notice that our friend
Uncle Sam likes to take a bite out of every paycheck for taxes.
He's got his eye on your brokerage account, too.  Let's say that
you're invested in a bunch of shares of Ford Motor Company
stock. Each quarter, you're paid a cash dividend by Ford. You'll
have to report this amount on your tax return because it counts
as taxable income to you. If you received a total of $40 during
the year in dividends, you may owe around $6 in taxes on it.
Taxes will also affect your brokerage account when you sell
stock. If you sell shares for less than you paid for them, you
have a "capital loss." On your tax return, you'll get to deduct
that amount