Dividends are what companies give to shareholders from company earnings. These may be qualified or non-qualified, or ordinary, and are taxed differently.
i.) Qualified Dividends: These are dividends from U.S. corporations or qualified foreign corporations and are taxed at the more favorable long-term capital gains rates. Qualified dividend tax rates range from 0% to 20% based on taxable income. To qualify, dividends must meet the required holding periods in addition to other requirements- for example, having a minimum holding period of 60 days for stocks held in the U.S.
ii.) Non-Qualified
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