Need help selecting a firm?

Tell us about your project and get introduced to the best accounting and tax firm for your needs.

Get Started

Qualified Dividends

IRS code defines qualified dividends as ordinary dividends that meet certain metrics allowing them to be taxed at lower long-term capital gains rates rather than the higher tax rates reserved for a taxpayer's ordinary income.

Qualified dividends are also taxed at capital gains rates.  To be “qualified” dividends, the dividends must generally be from a domestic corporation or a “qualified foreign corporation,” and the taxpayer must have owned the stock for 60 days during the 121-day period beginning 60 days before the ex-dividend date (in the case of preferred stock, 90 days during the 181-day period beginning 90 days before the ex-dividend date). 

TaxBuzz Guides