Definition
Qualified Dividends are dividends that meet specific criteria set by the IRS and are taxed at the lower capital gains tax rate rather than the higher rate for ordinary income.
Usage and Context
Qualified dividends meet specific criteria and are taxed at a lower long-term capital gains rate.
Frequently asked questions
Do qualified dividends qualify for lower long-term capital gains tax rates? Yes, qualified dividends are taxed at the lower rates for long-term capital gains.

What are the requirements for a dividend to be a qualified dividend? A qualified dividend must be paid by a U.S. corporation or qualified foreign corporation and meet specific holding period requirements.

Are dividends taxed higher than capital gains? Yes, ordinary dividends are generally taxed higher than qualified dividends, which are taxed at lower capital gains rates.
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Benefits
Qualified dividends meet specific criteria and are taxed at the lower long-term capital gains rate.
Conclusion
Qualified Dividends meet specific criteria and are taxed at a lower rate.
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