5 ms·

Dividends are taxed punitively, though.

• Thrymr 5y ago
  Less punitively than earned wages, in the US, for most people.
  • queuebert 5y ago
    No, it's the same. Dividends add into your adjusted gross income.
    • Thrymr 5y ago
      > No, it's the same. Dividends add into your adjusted gross income. Qualified dividends (most dividends for most people from public US companies) are indeed taxed at a lower rate than income. That rate is 0% for up to $41k (single) or $83k (married filing jointly), and for almost everyone it will be lower than the marginal rate on income [0]. It goes into AGI on the tax form, but comes off again with the recalculation. If you have significant dividend income, you are missing out by not doing that calculation! [IANAL and this is not tax advice] [0] https://www.nerdwallet.com/article/taxes/dividend-tax-rate https://www.nerdwallet.com/article/taxes/dividend-tax-rate