qualifying dividends

Qualified Dividend

In the United States, a dividend eligible for capital gains tax rather than income tax. This is advantageous to the investor as capital gains are usually taxed at a lower rate than ordinary income. To become a "qualified" dividend, the security from which the dividend derives must be held for at least 61 days during a certain 121-day period (for common stock) or for at least 90 days during a corresponding 181-day period. Also, the corporation paying the dividend must either be American or at least have stock readily tradable in American securities markets. See also: Ordinary dividend.

qualifying dividends

The dividends that meet Internal Revenue Service regulations for exclusion or partial exclusion from federal income taxation. For example, corporations are permitted to exclude a portion of all of the qualifying dividends received from stock owned in domestic corporations. There are no qualifying dividends for calculating individual income taxes.
References in periodicals archive ?
Allowing the 85-percent deduction lowers the effective tax rate on qualifying dividends for corporations taxed at the highest rate from 35 percent to 5.
0682 per share were non- qualifying dividends and $0.
In particular, section 3 makes clear that taxpayers may not specifically identify qualifying dividends as either deductible or nondeductible in whole or in part.
Thus, prior to the 2004 Act, a CFC that was also a FPHC could not pay qualifying dividends, whereas a CFC that was also a PFIC, but not a FPHC could do so.
Section 302 of the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) reduced the income tax rate for qualifying dividends received by individuals to 15% (5% for taxpayers in the 10% mid 15% tax brackets).
0277779 per share are considered qualifying dividends.
The Eaton Vance survey highlights the importance of increasing dividend income and the reduced tax rate on qualifying dividends and the effects of these on investors' savings and investment decisions," stated Mr.
The Form 1099-DIVs will show that 100% of the distributions are taxable as qualifying dividends eligible for the 15% rate.
015947 per share are considered qualifying dividends.
07956 are qualifying dividends and of the Class D preferred stock dividends, $0.
In January 2005, shareholders will receive Form 1099-DIV which will report the amount and character of the Fund's distribution and the actual amount of qualifying dividends distributed during the calendar year 2004.
The reduced tax rates for qualifying dividends and capital gains have caused more individuals to be subject to the Alternative Minimum Tax (AMT).