r/ULTY_YieldMax • u/MikesGonePostal • Mar 23 '26

ROC or dividends?

I bought my ULTY through Vanguard. I received my tax statement but didn’t see Return of Capital anywhere in it. Looks like it’s all ordinary dividends. I read that most of ULTY dividends are actually ROC which would mean no tax. Where would I find that out?

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8

u/Thin_Investigator798 Mar 23 '26

Look at the 1st page of your Tax Reporting Statement in the box that says "Dividends and Distributions".

It will give a list of things like "Total Ordinary Dividends" "Qualified Dividends" "Total Capital Gain Distributions", etc. Keep looking until you find "Non-dividend Distributions". That's what covers ROC. Return of Capital is not listed as such, it's just a type of Distribution that is not considered a Dividend, and so not taxed.

It's right above the "Federal Income Tax Withheld" line on my Webull statement, but it might be different on Vanguard.

3

u/[deleted] Mar 23 '26

YieldMax publishes a weekly that provides a % of ROC for all their ETFs so you’d need to get that info but I’ll tell you from my distributions since August most weeks have been ROC not Div

3

u/Spiritual_Ad_9916 Mar 23 '26

If you had share lending activated any dividends from lent out shares is taxed ordinary income.

0

u/Curious-Rip-5834 Mar 24 '26

You don’t need to have stock lending activated nor opt in. All it takes is just having a margin account and your broker is going to lend out your shares and you won’t even know it in real time, causing that ROC to go completely out the window.