Dividend Taxes: Everything Investors Need to Know

[@Patriciabanks5]

The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.

[@suzannehenderson5]

I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.

[@emiliabucks33]

Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.

[@JordanPortales]

Please who is the consultant that assists you with your investment and if you don't mind, how do I get in touch with them?

[@emiliabucks33]

The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Carol Vivian Constable‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@JordanPortales]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@MonicaAguilera98]

Well, I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered and I don't know where to go here out of devastation.

[@MarthaRamirez09]

@RobertGariepy56 I’m both a dividend and growth investor and there are Great dividend stocks out there! The trick is to diversify and put in enough to where you actually get good dividend payments Monthly. I made my first million from repositioning and rebalancing my stocks using a full-service broker so I invested and reinvested my profits.

[@MarthaRamirez09]

@StephanieYoder67 Her name is “Alice Marie Coraggio” can't divulge much. Most likely, the internet should have her basic info, you can research if you like.

[@T500cal]

Really helpful. The one thing holding me back from diving into income investing was the tax part of it all. This video was right up my alley.

[@eliorbilow8797]

Thanks for the video! It helped me get my head wrapped around how to file my taxes this season before I sit down with the pen and daunting tables!

[@JohnDoe-xr5is]

1) Own the qualified dividend stocks in the taxable account (no tax up to a certain limit)....2) own REITS and BDC in IRAs (no tax) and 3) run away from MLPs. They can be tax nightmares. My view of MLP: There are other fish in the sea.

[@vapingamers]

Dude loved this information. Thank you!

[@Sharpshooter649]

4:30 The holding period requirement to make a qualified dividend is unnecessary: the Form 1099 given to you by your brokerage will classify all your dividends as Qualfied at the end of the year, whether you held for 61+days or not

[@supercruchynoodle]

Past a certain income there is no advantage to IRA contributions as I have found out.

[@RubyRhu]

I did not know about municipal security dividend funds. Thanks!

[@robertwatts4941]

Thanks, I am keeping this in a playlist. I will listen a few different times. Always learn something on this channel.

[@thomasasix8477]

There is way too much information too fast, lol. I had to pause and rewind it a couple of times. Still, thank you for the content!

[@3Dimensional3]

You can change the speed of the video if necessary

[@rebeccaartgallary]

I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further

[@purplebliss6875]

It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.

[@VanPelt54u7fcyde57]

I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.

[@lindamattalom]

we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

[@VanPelt54u7fcyde57]

My Financial Advisor is AMY JEAN ANDERSEN. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can run a quick online research with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so.

[@moriorinvictus]

Creator forgot to mention that Roth IRA *contributions* can be withdrawn at any time tax free.

[@vevenaneathna]

roth ira for poor people bro

[@soniakhameed3412]

If we open an LLC account, how much will be taxed on our dividend?

[@havfun584]

If dividend is my only source of income should I claim myself as self employed investor for the sake of medicare and social security tax?

[@Biz005]

Awesome video Dividend Bull!

[@jasonluong3862]

I am confused about the tax part of Traditional and Roth IRA. How does the IRS know what money is used in the contributions? IRAs are self managed unlike retirement accounts managed by my employer who knows which part of my salary money is pre-tax and post-tax, i.e the gross and net. With Roth IRA contributions, the money is out of pocket. Therefore it is in a way, already taxed because that money is from the net salary pay. At the end of the year, the IRS will take a portion of the balance from the IRA account as a tax? When I start withdrawing from it after the age of 59.5, whatever earning from this Roth IRA at the moment is not taxed? By contrast, with Traditional IRA, the IRS does not dip into the account’s balance at the end of the year. However, when the account is drained at 59.5 years of age, whatever accumulated earnings at that time will be taxed. This moment can be 40 years into the future. How does the IRS know how much tax will be levied against the earnings? Will it do so retroactively using the tax rates of all the previous years or will it use the tax rate of the withdrawal year?

[@stephenhegarty6179]

I thought I would have to pay taxes on dividends for IRA account that I have a substantial balance in SCHD …..thank you for the info

[@estrader6214]

Great presentation! Aren't taxpayers required to pay dividend income quarterly?

[@michaelantoniojeter9865]

Thanks for your videos - love them. does a subsidiary have to pay tax on income on paid to parent as as dividend?

[@lordbyronkeith9488]

This is exactly why I'm totally hooked on your channel and why I hold it in such high regard! Huge props and thanks for all the valuable insights and why I ardently recommend your channel to acquaintances harboring aspirations of venturing into the captivating realm of investing. Since embarking upon my own investing odyssey, your invaluable guidance has masterfully dispelled any trepidation and enigma that enshrouded this profound undertaking. Thank you!

[@ComicVerseComics]

Can you do an episode on: EPR Properties: ERP Avalon Bay communities: AVB Medical Properties trust: MPW Prologis: PLD Any and all help and guidance you provide is truly a blessing. Thank you for your help and great content.

[@ususopen]

Super helpful. Thanks for putting these together. Just want to add one thing: Dividends received from REITS enjoy a 20% deduction. So compared to BDC and other high dividend stocks, REITS have greater tax advantage.

[@charlesrivers2647]

199A

[@jonathanfoster2263]

when it comes to an standard IRA does it matter if your distribution is a qualified or non qualified dividend? Or is it all just considered income?

[@ROCO-n5r]

Thank you so much. great explanation

[@GregK235]

Thanks for the overview on taxation, especially the recommendation/warning to consult a tax professional for international stocks & pass-thru entities, particularly MLPs.

[@robertm.0034]

Great video. Question: In a non retirement brokerage account, are dividends taxed differently if I choose to reinvest vs. cash out?

[@dominickolas]

No, unfortunately, whether you get the money in your pocket, or just flipped it over into the drip, IRS says you got paid.

[@robertm.0034]

@dominickolas thank you. But are they taxed at different rates/percentages if I cash out vs. reinvest?

[@dominickolas]

@@robertm.0034 no. The way you should imagine it, is your taxes. If you did put in your pocket. You were paid. Then you just spent your money. And they did not care what you spent your money on.

[@5dumars]

Confirmed that TurboTax requires a higher package for K-1 filings

[@zanshinhabit6212]

A few points to consider. Using IRS rule 72T you can access money in a 401k, IRA, or rollover IRA before 59 1/2 without paying the 10% penalty as long as you are no longer actively contributing to the fund. Additionally, if you deposit after tax money into a traditional IRA you can roll it into a Roth IRA and get around the income and value cap. It’s commonly referred to as a back-door contribution.

[@Wurstbrot5555]

Man. I am from Germany but reading this makes me forget how crazy our tax system is!

[@danharkness7868]

This information was great. Thank you. So much to learn.

[@dawsonstoneroad7549]

Great topic

[@Apeiron242]

Taxes are the rent of living in civilization.

[@hannahdonald9071]

After watching this video, a lot of things now make sense to me. However, I have questions regarding sizing into a trade and also ETF/Digital assets portfolio management. Often times I see myself sizing in when my pre-determined zone is met but I’m unsure what has the best potential: going with a full size order or sizing more as my the price extends further into my zone. And how are people making $450K already in this first half of the year? Sometimes the psychological part of this is the most difficult!

[@tampabayrodeo2474]

Mostly based on your comfort level with risk. Better off sizing in when things go your way when trading an account with mini futures or high leverage. In this manner, your initial stop loss is still a respectable one. However, if you trade micros or with minimal leverage, you might as well start at "full size." Although it increases the win percentage, micros still have a stop loss that is not very near to the entrance. IMHO. For your own convenience, I would advise you to seek professional advice.

[@graceocean8323]

@finestbearhug2951 I've been looking at comparable opportunities in the current market because I know a lot of people who made fortunes from the Dotcom crash and the 2008 crash. Could this consultant who helps you be of any assistance?

[@mcginnnavraj4201]

She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.

[@user-lx1dy3iw1z]

Scam alert ⚠️ 📢

[@SpeakerBuilder]

I found a list on line of all MLP's in the NYSE, and I now check an energy stock I am interested in against this list before purchasing stock in that company. The complexity of MLP's is not worth the trouble to me considering all the other alternative stocks I can buy that do not come with this extra burden. Excellent video on this topic, BTW, thanks again so much, your videos are invaluable to me, don't know where I'd be with my stock investments without your help.

[@charlesrivers2647]

You can also have a MLP in a Roth IRA and not worry about anything as long as you are making LESS than $1000 in dividends a YEAR from that MLP.

[@janshuster1426]

​@@charlesrivers2647 All well and good until they convert to a C Corp or are bought out. Don't ever hold in a retirement account.

[@mathiaspurner3791]

damn never been this early before, not even living in the us tho

[@inicMich-rc5wo]

I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year... Investment should always be on any creative man's heart for success in life.

[@raphfelimax2713]

I agree with you and believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don't know who agrees with me but either way I recommend real estate or crypto and stocks.

[@adamdouglas9888]

Yeah!! It would be more beneficial and yield more profit if you actually trade on cryptocurrency, I've been trading since the dip, I've made so much profit trading.

[@arktom7335]

How does this trading stuff work? I'm really interested but I just don't know how it go about it. I heard people really make it huge trading

[@josehenry7205]

trading is easier with proper guidance, especially from a professional, Newbies who are not aware of how crypto truly works and wish to make profits from it, I would advise to invest with a professional like Fergus waylen, It helps secure and minimize the possibilities of losses.

[@georgebasonathan4784]

I'm honestly surprised that this name is being mentioned here, I stumbled upon one of his clients testimony last week in CNBC world news

[@stonersgym8120]

One question for IRA's would be do the dividends you reinvest count toward your contribution limit?

[@shereeblakemore5070]

No, your dividends are reinvested outside of your annual contribution limit, depending on your age.

[@stonersgym8120]

@@shereeblakemore5070 Thanks!!

[@boomer8066]

yes thank you i was wondering about this

[@peoriaos6627]

Great video!

[@dwiz_9336]

You literally read my mind dude, and I was just gonna ask about dealing with Taxes

[@archoplites]

Thanks for covering this subject. Understanding taxation of investment/retirement income should be a part of your investment strategy...not an afterthought. With my local work investing group, I've been pushing tax consideration and planning when evaluating dividend income along with other sources of income.

[@davesites]

👍🌅

[@sobo679]

There's also the backdoor roth.....you can max out your 401k then convert to roth. There are some restrictions to what is the max amount and when you can convert (might not be allowed until you leave that particular job, it depends on the provider). If you do this in the same tax year, there is no tax consequence.

[@ugot1try]

Thanks so much for this, just starting to build up a taxable account outside of my Roth IRA and 401k

[@SpeakerBuilder]

For the interested viewer, I'd like to share a few things I have learned. First, whether a stock pays qualified vs ordinary dividends is very hard to discover ahead of time, and my alternative strategy involves buying a small amount of a stock and seeing over time what type of dividend it is paying, then determine whether to buy more of that stock and where to put it, since I am trying to put all my ordinary dividend paying stocks into my Roth where I don't have to worry about the tax rate. Second, whereas initially I was obsessed about the higher tax rate of ordinary dividends, I have since learned after doing some simple calculations that compared to a stock that pays a qualified dividend, if I consider an alternative stock that pays an ordinary dividend but pays just one percent higher a dividend rate, that increase of one percent will compensate for the higher taxes paid on the ordinary dividends. So I no longer worry about the dividend tax rates. Finally, some stocks pay a combination of qualified and ordinary dividends along with interest and return on investment funds. There is nothing simple about stocks.

[@lonewanderer3603]

I can only imagine taxes will increase in the future, so I use the Roth retirement accounts.

[@vigilantezack]

While that might be true, the idea is that in retirement, you don't need that much money to live on, expenses are lower, and you take home less income from your retirement accounts, thus you will be naturally in a lower tax bracket. If you only need to live on $45k in retirement, married let's say, you're not likely in a large tax bracket anyway. But when you're younger, if you make a lot of money, getting the tax break NOW can save you more money overall.

[@superbdiamondrange]

Dt ft

[@TyroneCoseip]

I'm from the Philippines and the NET dividends I get from my IBKR account is already 75% of the dividend announced (25% withholding tax). This is the usual in the Philippines as well with our withholding tax being 10% for dividends. For Americans earning dividends, does your brokerage account already deduct withholding taxes? Since it is the NET dividends that actually matters for expenses and such in daily life right?

[@Sharpshooter649]

4:31 I also heard that the 60 day holding period must be unhedged without options (you can’t have sold covered calls on the dividend paying stock). Is that true?

[@InvestersEdge-lm6zl]

Great video, i did notice one mistake concerning the roth ira withdrawals before 59 1/2. In a roth you are allowed to withdraw your contributions at anytime however you cannot withdraw your earnings , currently i have 16,000+ in my roth and i contributed 12,500. If i wanted I could withdraw 12,500. I am unable to withdraw the amount over that though without paying penalties(also; see reply below)

[@InvestersEdge-lm6zl]

Also another tax disadvantage to the roth is that you have to wait 5 years after opened your roth to withdraw(without penalty)your “gain” any amount over the amount you contributed to it (not including rollovers). Even if you are over 60.

[@lonewanderer3603]

Thank you for that information. I didn't know that.

[@InvestersEdge-lm6zl]

@@lonewanderer3603 no problem, i love my roth and try to put all my retirement money in there

[@vevenaneathna]

bro i emptied 80k out of my IRA coz i went back to school. tax free penalty free. loopholes

[@GrayBeard64]

Please focus on the individual holdings video series...you keep jumping around on topics instead of finishing the series....please and thank you

[@richardm654]

You can withdraw your original deposits from a roth penalty free any time. It is called the basis and you will need to keep track of this. You will be penalized on any earnings you withdraw early. Also, MLP's are tax free in a roth only on the first $1000 in dividends earned.

[@hey123pow]

Thank you for correcting this point!

[@vigilantezack]

Is that first $1000 for all time accumulated or something like first $1000 earned per year or?

[@richardm654]

@@vigilantezack First $1k on dividends in a year. Look up to verify exactly.

[@wholeNwon]

Very good guide except that you should remove the word "THERE'S" from your vocabulary since you almost always used it incorrectly. Presenting important information with third grade grammatical mistakes is unsettling.

[@Lou_Snuts]

The rule that dividends are taxed in the year received is not entirely correct. In cases where the "Ex-dividend" date falls in, for example December of one year, but is paid in January of the next year, the dividend is "constructively received" in December. Thus, it must be included in a taxpayer's dividend income in December. The same rule holds true for dividends from non-public "C" corporations.

[@Azaazbuka]

400k in qualifying dividends is the goal. 15% max on taxes if you're married 😊

[@mmar161]

Ended up costing me more to do my taxes bc of the LP form then what I made in the stock.

[@PrivateUsername]

Invest in your 401(k) since you can retire at age 55 instead of waiting until 59 1/2. Google "Rule of 55 401k". So in addition to being able to invest over $50k a year (total), you can retire earlier than with a regular IRA.