Qualified Dividends

Qualified Dividends

Qualified dividends are paid by U.S. corporations or qualified foreign corporations meeting specific IRS criteria. https://trusteddating.org/

They benefit from lower tax rates 관련주 compared to ordinary income.

1. Tax Rates: Qualified dividends are taxed at long-term capital gains tax rates, which are 0%, 15%, or 20%, depending on the investor’s income level.
2. Example: An investor in the 15% tax bracket for long-term capital gains would pay 15% on qualified dividends from companies like Johnson & Johnson or Coca-Cola.

Non-Qualified Dividends

Non-qualified dividends, also known as ordinary dividends, do not meet the criteria for qualified dividends and are taxed at the investor’s ordinary income tax rates.

1. Tax Rates: Non-qualified dividends are taxed at the investor’s marginal tax rate, which can be as high as 37% for high-income earners.
2. Example: Dividends received from real estate investment trusts (REITs) or master limited partnerships (MLPs) are typically non-qualified and taxed at ordinary income rates.

Special Dividends

Special dividends, also known as one-time dividends, are distributions made by companies outside of their regular dividend schedule.

These dividends can be either qualified or stock non-qualified, depending on the circumstances.

1. Example: A company might issue a special dividend following a significant asset sale. The tax treatment depends on the nature of the dividend and the company’s overall dividend policy.