How are qualified dividends and capital gains taxed?
The individual federal income tax rate on distributed qualified dividends and long-term capital gains generally will be taxed at 5% or 15%, depending on the shareholder’s ordinary income tax bracket. The 5% rate applies to distributed qualified dividends and long-term capital gains received by shareholders in the lowest two ordinary income tax brackets.
Related Questions
- How do I determine which of the dividends reported as qualified dividends on Form 1099–DIV are eligible to be taxed at one of the lower federal long–term capital gain tax rates of 15% or 0%?
- How are qualified income dividends taxed as compared to non-qualified dividends?
- How are qualified dividends and capital gains taxed?
