Qualified Dividend

(redirected from Qualified 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.
References in periodicals archive ?
income tax purposes, Enerplus' dividends are considered 'qualified dividends'.
For non-resident shareholders, these should be considered "qualified dividends" and may be subject to Canadian withholding tax.
Most dividends, including dividends passed through from stock funds, are qualified dividends that receive favorable tax treatment, although some conditions apply.
Similarly, the new kiddie tax rules modify the 0%/15%/20% breakpoints that would otherwise apply to a child's net long-term capital gains and/or qualified dividends. These modifications are also computed as the sum of a child's ETI and specific 0%/15%/20% preferential rate breakpoints borrowed from estates and trusts.
For non-resident shareholders, the company's common share dividends should be considered 'qualified dividends' and may be subject to Canadian withholding tax.
federal tax purposes, any dividends would be qualified dividends eligible for the reduced capital gains rates.
One of the real benefits in the tax code is the treatment of qualified dividends, which are tax-free up to a $50,600 income for an individual.
ATRA increased the top tax rates for long-term capital gains and qualified dividends from 15 percent to 20 percent.
The maximum tax rate on qualified dividends received by an individual, trust, or estate is 23.8% (base rate of 20% plus 3.8% net investment income tax for some high-income taxpayers).
The Jobs and Growth Tax Relief Reconciliation Act of 2003 provided that qualified dividends would be taxed at capital gain rates for individuals, trusts and estates.
2012 2013 Percentage CAPITAL GAINS Rate Rate Change If currently in 0% 0% Unchanged 10%/15% bracket Ifcurrently above 15% 15% Unchanged 15% bracket If currently above 15% 18.8% 21% increase 15% bracket and subject to 3.8% additional tax 2012 2013 Percentage QUALIFIED DIVIDENDS Rate Rate Change If currently in 0% 0% Unchanged 10%/15% bracket If currently above 15% 15% Unchanged 15% bracket If currently above 15% 18.8% 21% increase 15% bracket and subject to 3.8% additional tax
Under current law, investors face a significant increase in the federal tax rate of qualified dividends in 2013, as high as 43.4%.

Full browser ?