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and some of so called"dividends" are actually interest.

2007-12-18 18:27:52 · 1 answers · asked by Anonymous in Business & Finance Taxes Other - Taxes

1 answers

Dividend are ownership returns like when you own shares of stock.
Interest is what you get for lending money.
What feels wrong to many people is a credit union paying a dividend because all people with accounts are owners and you are sharing profits but it is based on what you have in your account like interest.
It is ok to put that on your tax return as interest income from the credit union.

2007-12-18 18:38:52 · answer #1 · answered by shipwreck 7 · 2 1

Interest is a return on investing or the sum charged by a lender for the loan of his money (you are effectively making a "loan" to a bank when you have a savings account--that is how you earn interest. Naturally they say the risk to you is zero and interest is pretty close to that as well right now!).

Dividends are taxable payments declared by the board of directors of companies to be paid to the shareholders out of current or retained earnings. They typically are cash payments, although at times you may get the dividend in stock or other property. They could be issued every month, every quarter, twice a year, annually, or as special cases.

2007-12-18 18:43:25 · answer #2 · answered by heyteach 6 · 3 0

Interest is we are paying on credit, But Dividend is different that if we are invested into shares in any company they will give share from Profit.

2007-12-18 18:40:55 · answer #3 · answered by sanky 1 · 0 0

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RE:
What is the difference between "interest" and "dividend"?
and some of so called"dividends" are actually interest.

2015-08-19 05:40:34 · answer #4 · answered by Delora 1 · 0 0

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