How Are Dividends Taxed?

How Are Dividends Taxed?
Dan Caplinger, The Motley Fool
·4 min read

Depending on the type of account that holds your dividend-paying stocks, you might pay taxes on your dividend income. Unless you hold your dividend-paying stocks in a tax-deferred account like an IRA or 401(k), you'll have to include your dividends as gross income in the year of receipt. Dividends that don't meet these qualifications get taxed at the same rates as ordinary income.