Confused about dividend taxes? Watch this.

[@Nanalyze]

Get your hands on the latest version of our Quantigence report for 50% off, only for a limited time! nanalyze-shop.fourthwall.com/products/quantigence-dividend-growth-investing-report-year-end-2023-sale

[@dominichoward4833]

You are on another level when breaking down this topic and it is an injustice that you don't have more subscribers. What a professional and great deep dive into the topic that I rarely see on this platform. Interested in the documents you guys produce as well and will definitely support them and the channel going forward. Thanks again for all that you do and your efforts on this topic.

[@Nanalyze]

Joe P. here. Thank you very much for the kind words Dominic! Testaments like yours let us know we're doing things right, and it's an unfortunate fact that most the financial content on KZbin is utter tripe because anybody with a microphone and some editing software can start producing videos, a small percentage of which actually help people become better investors. Our team is the real deal, and we come to the table with a lot of academic and industry experience. I'm also a former PhD, which means I'm used to starting from behind and working my way to the top. This channel will eventually grow to where it needs to be because we're not stopping until it does, the constant proliferation of armchair YT financial gurus aside. ;) Thank you for the support and please use the "share" button above to share our content with anyone who might benefit from it. :)

[@dominichoward4833]

@Nanalyze also I want to share the answer I got from Charles Schwab. I'm still super interested in SCHD and I am making the switch over from VYM even if there is no way to know if the dividend will remain 100 qualified moving forward. Your video was the final push and I am thankful for that. It is such a great fund as a core that im willing to make the move (FYI: I hate bonds): As you may know, in 2022 the SCHD fund's Qualified Dividend Income (QDI) percentage was 100%. That being said, there is no guarantee that the QDI percentage for SCHD will be 100% in the future as it can be impacted by changes to the underlying holdings of the ETF. I don't think they have REIT, but they may look at other holdings to keep the yield up. Thanks again, Dom

[@Nanalyze]

@@dominichoward4833 Hey Dom. It's very important to note that Schwab doesn't control what assets they hold. The operator of the Dow Jones U.S. Dividend 100™ Index decides that, which is likely the cause of the elusive answer you received. That index is run by S&P Global, so then you can go to their index methodology and look at the objective way they select constituents (we did that here: kzbin.info/www/bejne/sJK9iKOoac2rZtk). After assessing their rules-based methodology, there is every reason to believe the dividends remain qualified going forward. Even if one or two stocks were to be unqualified, the impact would be marginal at best. The likely reason they don't do that is because they don't want to deal with the added paperwork and hassle that comes from having to have two types of dividends being paid out.

[@dominichoward4833]

@Nanalyze great follow up and I can't thank you enough. I will review what you provided but this guidance appears very sound.

[@LetsDoThePhilippines]

Very informative. Thank you :) I am retiring early in Philippines. I’m 52 yrs old and this video gives me good info to implement.

[@Nanalyze]

Glad to hear! You escaped early. As is the case in any foreign country, do not let people know your net worth. Do not keep substantial amounts of money there. Be extremely careful about property deals. I know a lot of people who moved there - some very happy people and very sad people ;) Don't be afraid to move around the region a bit because Asia is a treasure trove of great travel experiences. Have fun! Joe P.

[@danstevens64]

Have you ever had somebody criticize you for retiring overseas instead of in your "home country"? For instance, maybe they don't like that you are holding assets that generate wealth from your home country but then in turn not spending money there to drive growth and tax revenue.

[@Nanalyze]

@@danstevens64 Interesting comment, but check this out. Only two countries in the world tax their citizens when they work abroad - Eritrea and the United States. So I spent half my life paying U.S. taxes and never living there. So if I retire abroad because my social security checks are going to be extremely small (yet I still had to pay taxes) then I don't feel bad about that at all :) Joe P.

[@danstevens64]

@Nanalyze you will support our unfunded liabilities and you will like it!!! Just kidding, congrats on retiring.

[@mattlongoria545]

Great explanation sir! You just continue to make me happy I subbed!

[@Nanalyze]

Having a viewer become so happy they subscribe is our second-favorite type of happy ending. Thank you for that! 😃👍😍

[@Bicepmonkey]

Excellent informative knowledge, editing, and satisfying entertainment; just subscribed

[@Nanalyze]

That's exactly the sort of content we want to be producing. Expect lots more of it. Thank you for the feedback and sub! Joe P.

[@factotums]

When I was alos Poor, Hungry and Determined I worked this dead end bar job where everyone was Albanian, for some reason. I assume there was a good reason but I never figured it out. Anyway, one of the guys I worked with said I should go to his 'accountant' to save money on my taxes. It was located behind a strip mall, with an unmarked door. Inside were maybe a hundred Albanians in the 'waiting room', families with kids, the whole gambit. The 'accountant' seemed surprised that I was there, like I was the first non-Albanian he had met since coming to the US. Anyway, he asked me some questions, and I ended up with a huge tax refund check. More than I made that year lol. Definitely illegal. I tried going back there a few years later just to see but everything was gone. I can't say I learned a lesson from this, but it makes for a good story.

[@Nanalyze]

That's an awesome story! You know the Albanians have a bad rap in Europe, but they really behave themselves in their own country. It's a hidden travel gem. Back about a decade ago they had a billion-dollar grow operation in Lazarat. The government came in there with machine guns and rocket launchers and they battled it out for a bit. Then they took it over and burned their stash. I went there not long after that happened hoping to score some cheap spliff. Unfortunately it was all done and dusted - back to business as usual. They do like to stick together though and aren't afraid of getting into some shady stuff. And there's no such thing as a dead-end bar job because it's one of the best places to meet people for networking! Similar to when I worked as a waiter - probably one of my favorite jobs ever. Thanks for the interesting comment! :) Joe P.🍸🍷🍹

[@kckaz4453]

From one NPC to another, I thank you.

[@Nanalyze]

We do what we can to improve the simulation

[@morpheouswarlord]

The average person does not need an accountant or a CPA unless you own a complicated business.

[@Nanalyze]

We happen to believe the average person who follows this channel does for reasons given in this video. ;)

[@joseroeder5492]

Unless you only get a W-2. Then yes use TurboTax

[@LuiggiChampan]

From PwC... In agreement!!

[@mike73ng]

The average person doesn’t watch this video.

[@ralphparker]

at 5:40, did you forget to subtract the standard deduction? The real problem with qualified dividends is that you may not know if they are going to be qualified or at least how much is qualified till you get your tax statement from your broker in February or March.

[@Nanalyze]

Good point. The examples provided are simplified so as to make it easy for people to understand how taxation works. Regarding qualified dividends, that's based on the company, not your broker's decision, so you can know that in advance. Most dividends are qualified with REITs being a classic example of non-qualified dividends. It's why a lot of dividend ETFs exclude them.

[@ynasra1065]

funny and very informative ...good job

[@Nanalyze]

Great to hear! We have to keep this stuff interesting otherwise people tune out.

[@wesleyberry4261]

"... cleaned highways, so I never got paid to do that." Did bro just toss in court-ordered community service?

[@Nanalyze]

You never volunteered to clean highways? There's always the off chance you'll find someone's stash.

[@wesleyberry4261]

@@Nanalyze I'll take your word for it!

[@loakland2773]

Great stuff... "Looking for your future ex-wife"... 🤣 Great explanation of the tax structure as it relates to USA taxation.

[@Nanalyze]

;) Really appreciate the feedback and glad you enjoyed!

[@CrossFit-Carnivore]

Are there a lot of call options holders selling tomorrow since tomorrow is the weekly expiration date? If so will this put downward pressure on the price action? If so do options folks tend to sell earlier in the day to avoid the selling pressure? Rookie here! Thanks.

[@Nanalyze]

Not sure what this question refers to but we're not interested in short-term market movements (noise) and speculating on those outcomes. As we always like to say, invest in companies, not stocks ;)

[@yestohappiness2721]

So what about the standard deduction? Don't you need to take that out first, then apply the 10%, 12%, etc?

[@Nanalyze]

Good point. The examples provided are simplified so as to make it easy for people to understand how taxation works.

[@CB_4216]

Great video. What are your thoughts on international dividend funds like SCHY? There was a lot of buzz around it when it first came out, but it is a bit surprising that in nearly 3 years it is still under 800m AUM.

[@Nanalyze]

We're working on developing an international dividend champions report actually. Perhaps once that's live we could compare and contrast it with an ETF like SCHY. Stay tuned :) -Wyatt C.

[@nightdonutstudio]

So in New York, it does not matter what your income is, low or high. All taxed at 10.9% for qualified dividend and long term capital gain?

[@Nanalyze]

We can't speak to that, unfortunately. That would be a question for a CPA (we can't emphasize enough how important it is to have a good accountant!)

[@metwono]

This video is effing awesome.

[@Nanalyze]

That's some kind praise, thank you!

[@rustiehead]

I have an accountant, but he costs $400 to do my taxes. To me, that’s expensive and I’m thinking of shopping for another accountant. Any suggestions for one here in Baltimore, MD? Thanks for your video!

[@Nanalyze]

Glad you enjoyed the piece! Do not ask for recommendations online as that's asking for trouble. Ask colleagues and friends. If all else fails, ask family.

[@KayFabe87]

Turbo Tax

[@Nanalyze]

@@KayFabe87 I've found that it's worth it to have a good accountant as opposed to automated tax preparation software. Now this is solely because of the complexity of taxes in the United States. AI could help here, but for now I'm convinced a human is most important to maximize benefits. Joe P.

[@lorenzop7507]

Hi Joe. This is great timing for me as I am moving to Switzerland this year. I’d love your recommendation for expat taxes. Thanks!

[@Nanalyze]

Hey Lorenzo. Just contact us here (www.nanalyze.com/contact-us/) and I'll introduce you to my accountant. Joe P.

[@michaeloneill4437]

Thank you. Very good explanation.

[@Nanalyze]

Really glad you found that useful! I actually learned a lot from that myself. Frankly, I'm embarrassed how little I knew about such an important topic. Joe P.

[@mannycarrasquillo6910]

Love your content.

[@Nanalyze]

That's great to hear, thank you!

[@flavioespinal5156]

Do i still have the benefits if my brokerage account is in a llc instead of personal ?

[@Nanalyze]

That's a great question that requires research. If you're paying us money, drop us an email and we'll help you find the answer ;)

[@christopherb7266]

VXUS which is all internationally domiciled companies has a dividend yield of about 3%, 70% of which are qualified 30% nonqualified. VTI is 95% qualified

[@Nanalyze]

Thank you for the info! We'll be talking a whole lot more about international dividend companies this year as we work towards developing our international dividend growth report. Stay tuned.

[@svenhuber6533]

I live in China and they have a tax treaty with the US, taxing any dividends at 10% and nothing on capital gains.

[@Nanalyze]

Did not know! Are you a Chinese citizen then only? Or is the rule attached to another citizenship?

[@svenhuber6533]

@@Nanalyze that applies to all people live in China USA divided income

[@svenhuber6533]

Pls download and read the tax treaty

[@Nanalyze]

@@svenhuber6533 A cursory look shows that Chinese citizens are subject to a tax treaty which taxes dividends at 10%. Everyone needs to do their own due diligence on taxation as it's a very complex topic. Thank you for the response!

[@Nanalyze]

@@svenhuber6533 Good advice, thank you!

[@udaykhatry]

Come here to hear what he has to say about tax on dividends and heard him say lets your accountant handle that. WTF!

[@Nanalyze]

Yes, the presenter said "see your accountant" and the other 17 minutes was just blank audio. ;)

[@sandie4936]

deductions from income before taxation

[@Nanalyze]

Can you elaborate? We're not sure what you mean here, sorry.

[@sandie4936]

@@Nanalyze My full salary is not subject to tax. Either I take the standard deduction or itemize, and do whatever other additions and subtractions the law allows or requires. You artificially inflate the tax in your example.

[@Nanalyze]

@@sandie4936 We try to keep things very simple because we are simple people ;)

[@weiszu3572]

@@sandie4936 It is if you're self-employed.

[@tugisthedrugproductions3230]

To summarize: this is all a big simulation vending machine located in a dusty bar somewhere and we're all NPCs

[@Nanalyze]

Nailed it. Costs a quarter to play and it only takes 5 minutes in that universe but a lifetime in this one ;)

[@uaeio]

A lot of irrelevant infirmation

[@Nanalyze]

Thank you for that scathing review. This has been brought to the attention of our HR lead, Gwyneth. When she's back from her shopping holiday in Lake Como she'll look into this immediately.

[@shirleysanchez1866]

Cleaned highways and never got paid?😂😂

[@Nanalyze]

You like that one? ;)

[@ductran5517]

Needs editing, too much rambling

[@Nanalyze]

Cheers for the feedback. We're always working on making things more concise. As long as people learn, then we're doing our job.

[@LuiggiChampan]

"Now we are MBAs not accountants" 😂😂 sooo... as an accountant who has an MBA trust me you guys are fine to speak on it.

[@Nanalyze]

Thank you for the vote of confidence! :)