Dividend

Key Points

• Your “qualified” dividends may be taxed at 0% if your taxable income falls below $41,676 (if single or Married Filing Separately), $55,801 (if Head of Household), or $83,351 (if (Married Filing Jointly or qualifying widow/widower) (tax year 2022).
• Above those thresholds, the qualified dividend tax rate is 15%.
• The qualified dividend tax rate increases to 20% if your taxable income exceeds $258,600 (if Married Filing Separately), $459,750 (if single), $488,500 (if head household) or $517,200 (if Married Filing Jointly or qualifying widow/widower) (tax year 2022).
• Non-qualified or “ordinary” dividends are taxed using the standard income tax brackets for tax year 2022.

Notes

Ordinary dividends are the total of all the dividends reported on a 1099-DIV form.

Resources

• Is There a Dividend Tax? Your Guide to Taxes on Dividends | TurboTax

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Last update: May 2, 2024