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Qualified dividends are taxed at a different rate than your regular, earned income or income from interest payments. ... You will report capital gains and dividend income — and losses — on ...
If you receive qualified dividend income, the capital gains tax rate is 20 percent, 15 percent or 0 percent depending on your income. It is often more profitable to receive qualified dividends ...
The IRS rules regarding classification of dividends as ordinary or qualified are complicated and it can be difficult for dividend investors to tell, before receiving a 1099-Div form, how their ...
From 2003 to 2007, qualified dividends were taxed at 15% or 5% depending on the individual's ordinary income tax bracket, and from 2008 to 2012, the tax rate on qualified dividends was reduced to 0% for taxpayers in the 10% and 15% ordinary income tax brackets, and starting in 2013 the rates on qualified dividends are 0%, 15% and 20%. The 20% ...
Another case where income is not taxed as ordinary income is the case of qualified dividends. The general rule taxes dividends as ordinary income. A change allowing use of the same tax rates as is used for long term capital gains rates for qualified dividends was made with the Jobs and Growth Tax Relief Reconciliation Act of 2003. [1]
There are also special rules for qualified dividends, which are dividends that are paid by companies that have met certain requirements. Qualified dividends are taxed at a lower rate of 0%, 15%, or 20%, depending on the taxpayer's income. [citation needed] The history of dividend taxation outside the US is just as varied as it is in the US.