Qualified dividends are dividends from US corporations and qualifying foreign corporations held more than 60 days, taxed at favorable long-term capital gains rates (0%, 15%, 20%) rather than ordinary income rates. Most dividends from S&P 500 stocks qualify. REITs, BDCs, and some foreign companies pay non-qualified (ordinary) dividends — taxed at higher ordinary rates. Your 1099-DIV reports qualified vs. ordinary dividends in separate boxes. To preserve qualified treatment, hold the stock for more than 60 days during the 121-day window centered on the ex-dividend date. Qualified dividends are a major reason taxable accounts favor stocks over bonds (whose interest is fully taxed).
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Qualified Dividend
August 22, 2026 · Aditya Gupta
Tax
Related terms
Alternative Minimum Tax
Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure high-income taxpayers pay a minimum. Calculate…
American Opportunity Credit
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The Child Tax Credit (CTC) provides $2,000 per qualifying child under 17, with $1,600 refundable as the Additional…
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