00:00How are dividends taxed? There's a difference between qualified dividends and ordinary dividends.
00:06Most dividend stocks pay qualified dividends, which depending on your tax bracket are taxed
00:11at a rate of 0 to 20%. That range is significantly lower than the ordinary income tax rates of 10
00:18to 37% or more. And you can do a simple Google search to be able to find this information about
00:24any company or any ETF. And the way the taxes actually work is that at the end of the year,
00:29you'll receive a tax form from your investing platform that shows all of the gains that you
00:35made from any sales of any stocks. And then also any gain that you made from dividends from companies
00:40throughout the year. Then you just submit that form when you're doing your taxes that next April.
00:45And at that point, you'll have to pay whatever's due.
Comments