2007-02-09 10:32:05 · 5 answers · asked by jpdrottar 1 in Business & Finance ➔ Taxes ➔ United States
Ordinary dividends are ordinary income and are taxed at your normal tax rate (whatever bracket you are in, which is determined by your total taxable income).
Qualified dividends are capital gain; therefore, they are taxed at 5% if your normal tax rate is below 25%, or at 15% otherwise.
2007-02-09 10:57:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Dividends that are not specified as qualified are taxed as ordinary income - the rate depends on your total taxable income.
2007-02-09 19:55:23 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The tax rate on ordinary cash dividends is your marginal tax rate, whatever that works out to.
2007-02-09 19:06:14 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Assuming that they are qualified dividends, either 5% or 15%, depending upon what tax bracket the remainder of your taxable income puts you in.
2007-02-09 18:57:01 · answer #4 · answered by HandyDan 3 · 0⤊ 1⤋
15%
2007-02-09 18:57:04 · answer #5 · answered by Akbar B 6 · 0⤊ 2⤋