What are the tax rates for qualified dividends?

What are the tax rates for qualified dividends?

Qualified dividends are taxed at different rates depending on your income level. Generally, they are taxed at 0%, 15%, or 20%.

How do I know if my dividends are qualified?

Dividends are considered qualified if they meet certain criteria, such as being paid by a U.S. corporation and held for a specific period.

What is the holding period for qualified dividends?

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

Are there any exceptions to these rates?

Yes, certain dividends, like those from REITs or MLPs, may not qualify for the lower tax rates and could be taxed as ordinary income.