What are the differences between qualified and ordinary dividends?

What are the differences between qualified and ordinary dividends?

Qualified dividends are taxed at a lower rate, while ordinary dividends are taxed as regular income. Would you like to know more about the tax rates?

Yes, what are the tax rates for each type?

Qualified dividends are typically taxed at 0%, 15%, or 20%, depending on your income level. Ordinary dividends are taxed at your regular income tax rate.

Are there any specific requirements for dividends to be considered qualified?

Yes, to be considered qualified, dividends must be paid by a U.S. corporation or a qualified foreign corporation and you must hold the stock for a specific period.

What is the holding period for qualified dividends?

Generally, you must hold the stock for at least 61 days during the 121-day period that begins 60 days before the ex-dividend date.