Tax Dividends – Killer IRS Income Tax Help
Tax Dividends – Guide On Dividends Taxation
There are rules that reduce the tax rate applied on dividends. Usually, dividends are taxed as ordinary income. If an investor holds the stock for a long time, the dividends he receives are taxed as qualified dividends.
Qualified Dividends Tax Rate
There are certain situations when the dividends are taxed as qualified dividends. According to the IRS, the recipient of the dividend must hold the stock for more than 60 days during the 121 -day period that begins 60 daysbefore the ex-dividend date. Capital gains tax rate applies for this type of dividends, which is usually lower than income tax rate.The tax rate on qualified dividends is 5%, for recipients with a lower tax bracket. It is 15% for those with a higher income tax bracket.You can report ordinary and qualified dividends on your tax return using Form 1099-DIV. You may also report these dividends on Form 1040, Schedule B.Make sure you do the smart thing and hire professional representation to ensure you get the best resolution in place. With over 30 years of experience in this business, Joe Mastriano PC has the knowledge and passion to represent you. Visit our website by clicking the link below or speak to someone NOW, at (713)774-4467.