Week 43 Day 2: Qualified vs. Non-Qualified Dividends: A Hidden Tax Trap

Qualified dividends are taxed at the favorable long-term capital gains rate (0/15/20%). Non-qualified dividends are taxed at ordinary income rates (up to 37%). The difference can nearly double your ta...

Qualified dividends are taxed at the favorable long-term capital gains rate (0/15/20%). Non-qualified dividends are taxed at ordinary income rates (up to 37%). The difference can nearly double your tax bill on dividend income. Most dividends from VTI, SCHD, and VXUS are qualified. REIT dividends and bond interest are not.