Dividends, Ordinary and Qualified

[@thedalillama]

Ridiculously overly complex Tax Code.

[@PremiumTrackerSilverStacker]

So so so so stupid.

[@wynsgale]

Amen!

[@DannyKlaus-i6p]

I understand the benefits of a Roth IRA, but do you have to pay taxes on ordinary dividends when the fund is held in a Roth since they are viewed differently by the IRS?

[@TheTaxGeek]

No. If you take a qualified Roth distribution, all the earnings, whether they be interest, dividends, or capital gains, are tax free.

[@apollocobain8363]

Good overview

[@TheTaxGeek]

Thanks!

[@Sharpshooter649]

Can a special divided Be qualified?

[@TheTaxGeek]

Yes, it can be.It depends on how long you've held the stock.

[@Sharpshooter649]

@@TheTaxGeek Awesome! I’m going to buy Costco and hold it for 60 days so I the special $15.00 dividend becomes QUALIFIED ! 🚀🚀🚀

[@neddiego2570]

So if you have million dollars portfolio in dividend stocks & you are in lowest tax bracket you don't need to pay tax on qualified dividends?

[@TheTaxGeek]

Theoretically, yes.

[@jacquelinesmith3450]

Kool, this was helpful. 🙏

[@TheTaxGeek]

Thank you--glad to hear that!

[@mouaderca]

Nice Job

[@angelafliehman1102]

❤❤

[@Sharpshooter649]

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

[@TheTaxGeek]

No, they won't. I've seen hundreds of brokerage statements and 1099-DIVs where the ordinary dividends and the qualified dividends do not match.

[@bambi06292003]

What happened if thethe qualified and ordinary dividends do not match

[@narutoutzumaki1036]

I'm studying accounting in college and my only question: is why does does this shit have to be so complex? So many needless rules!

[@TheTaxGeek]

You won't get any disagreement from me on this point.. In fact, here's a video on that very subject: kzbin.info/www/bejne/e6ixp2OhgKh0a80

[@lanuiiohu]

tax was so easy 60 years ago. A high school drop out can complete federal & state tax within 15 minutes. Now, everyone hires CPA or using software. sad

[@narutoutzumaki1036]

@@lanuiiohu I 100% agree, as an accounting student. even CPA can make mistakes because no way they can remember all the tax laws.