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4 answers

It depends on what country you live in and what tax bracket you are in and what stock the dividend is paid on.

In the U S, many dividends but not all are subject to lower tax rates than regular income. But you have to see the calculation to believe it. It is an accountants worst nightmare. In general dividends get the same tax treatment as long term captial gains. The exceptions will be noted on your 1099. The exceptions are either taxed at the normal tax rate or not at all if they are considered a return of captial. In that case they are deducted from your cost basis.

2006-08-10 00:04:12 · answer #1 · answered by Anonymous · 0 0

In the U.S. it is 15% (unless the law changes) on common stock dividends. It doesn't depend on anything else (unless maybe your income is high enough to pay the AMT).

However, some preferred stocks pay dividends that are taxed at 15% and some preferred divs. are taxed like ordinary income.

2006-08-11 17:47:06 · answer #2 · answered by Tom H 4 · 0 0

Dividends are added to other income, then your tax is calculated, so you'll be paying at whatever your marginal tax rate is.

2006-08-09 17:50:40 · answer #3 · answered by Judy 7 · 0 1

15%

2006-08-09 15:38:27 · answer #4 · answered by Ranto 7 · 1 0

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