Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert, Get an Answer ASAP!

Dividend Tax Rules

Dividend tax rules can be a confusing subject to the average person or even to the most talented of accountants. Knowing the laws and rules is the best way to keep your taxes up-to-date and making the payment of taxes practical and efficient. Dividend taxes can involve large amounts of money and create many questions. Below are the most commonly asked questions about dividend tax rules that have been answered by the Experts.

If a person purchases a stock and only holds it for a few days until they sold it, would that person qualify for the 15% dividend tax rate?

In many cases an individual must own the shares for at least 61 days in order to qualify for the 15% dividend tax rate since the date of purchase does not count.

If I reside in England but all of my earnings are from an A company based in America. I made approximately $150,000 what tax percentage will I be liable for?

The single filer tax rate for a United States citizen in that tax bracket based on your income in most cases would be 28%. .

I am a non-resident alien in the U.S. and a citizen of the U.K. my work requires me to be a U.S. taxpayer. Are there any double taxation problems that could surface in this matter?

Since there is a tax treaty between both countries, in most cases you should not be double taxed. And generally any taxes paid to the U.S. would be credited back to you on your U.K. tax return.

On an income of $50,000 what is the tax percent for short term dividend tax, long term dividend tax, and qualified dividend tax?

Short term dividends are taxed at the taxpayer’s ordinary tax rate, which would depend on the taxpayer’s total taxable income. Long term dividends (which are held for more than a year) are taxed at 15%. Qualified dividends are subject to the outcome of Internal Revenue Service worksheet 8949 page D- 10 Instructions for Schedule D, and Internal Revenue Service Form 1040 page 37.Instructions for Form 1040.

A corporation’s taxable income is $1,500,000. If it distributes its after-tax income to its shareholders whose dividend rate is 15%, what is the total tax and the combined effective tax rate for this income?

In most cases the taxes at the corporate level would be roughly $510,000, leaving approximately $990,000 available to distribute. The tax on dividend at the shareholder level would be approximately $148,000. The total taxes would be approximately $658,000. This is approx 43.9% of income taxed.

Dividend tax rules can provide the answers to many questions - and sometimes it can create more questions and problems to solve. Keeping up with current dividend tax laws and rules can be essential whether it is for a company or an individual. The well informed person would do well by using every available tax resource to its full potential In order to ease the financial strain of taxes, and the many questions that they bring. Those who have questions regarding dividend tax rules should consult an Expert.
Please type your question in the field below

3 verified Tax Professionals are online now

Tax Professionals on JustAnswer are verified through an extensive 8-step process including screening of licenses, certifications, education and/or employment. Learn more

Online
Wallstreet Esq.

Tax Attorney

Doctoral Degree

★★★★★
586 positive reviews
Online
Mark D

Enrolled Agent

Master's Degree

★★★★★
1300 positive reviews
Online
Richard

Tax Attorney

Doctoral Degree

★★★★★
4280 positive reviews
See all Tax Professionals
JustAnswer in the news:
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
Web sites like justanswer.com/legal
...leave nothing to chance.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.