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.