Yes, if this is an earning divident and you held the undelying stock long enough. To ensure that the dividend qualified for a lower 5% or 15% tax rate, the IRS requires you to hold the stock for at least 60 consecutive days within a 121-day larger window, spanning 60 days before and after the ex-dividend date. Otherwise, the dividend is taxed as regular income. See similar questions...

No, many broker's 1099-DIV forms include in box 1b all dividends that potentially qualify, even if you didn't hold the underlying stock long enough to qualify. It's your responsibility to report dividends as "non-qualifying" if you hadn't held the stock for 60 days (more info). On your 1099-DIV form, dividends are reported in two boxes. Box 1a lists total dividends paid to you by your broker. Box 1b lists the amount of dividends which potentially qualify for the lower tax rate. See similar questions...

Because dividend payments are reinvested as much as 50% of the time, investors receiving dividends are able to save more when they have a smaller tax burden. The lower tax rate on dividends has also contributed to the growth in dividend payouts which ultimately leads to more consumer saving. See similar questions...

With the fiscal reforms that have been in force since 1st January 2004 there has been an important change in the way that dividends are taxed. Dividends received as a result of non-qualified possession are subject to a definitive withholding tax of 12.5%. Tax credits non longer available with the dividends. See similar questions...

It depends on what kind of dividend this is. Earning dividends are reported as part of your income and are taxed at either your normal tax rate or the lower qualified dividend tax rate, depending on how long you held the shares. Interest Dividends are always taxed as regular income, and do not qualify to the lower dividend tax rate. Return of capital dividends are taxed as a capital gain at the time you sell. See similar questions...

Microsoft paid a special dividend of $3.00 per share to shareholders of record on November 17, 2004. The special dividend payable date was December 2, 2004. For more information on the special dividend, read the press release. Microsoft Outlines Quarterly Dividend, Four-Year Stock Buyback Plan, And Special Dividend to Shareholders. See similar questions...

In May 2003, the U.S. Congress passed the Jobs and Growth Tax Relief Reconciliation Act, which cut income tax rates on most dividends and capital gains to a 15 percent maximum. Because REITs do not generally pay corporate taxes, the majority of REIT dividends continue to be taxed as ordinary income at the maximum new rate of 35 percent (down from 38.6 percent). See similar questions...

A dividend is a distribution of cash or property by a corporation to a shareholder paid out of the corporation's current or accumulated earnings and profits. Although Congress has not provided a comprehensive definition of earnings and profits, it is essentially an economic measure of a corporation's ability to pay dividends without distributing any of the capital contributed by either its shareholders or creditors. See similar questions...

Dividends paid on Freddie Mac's common and preferred stock are eligible for the new reduced federal income tax rates on "qualifying dividends" paid to individuals. These rates are effective for tax years beginning in 2003 and continuing through 2008. However, there are limitations on an individual investor's ability to use the reduced rates. See similar questions...

The lower rates are imposing on companies the “discipline of the dividend.” Investors’ increased appetite for dividends has forced companies to demonstrate profitability with the most transparent form of proof – cash payments to shareholders. Likewise, the drive for dividends encourages companies to undertake only the most profitable investments. See similar questions...

The ADR dividend is paid out to all holders net of the required 21.1%German withholding tax (20% "Kapitalertragssteuer" + 5.5% "Solidarit??tszuschlag"). For the purposes of income tax reporting, the Allianz ADR dividend is considered "Qualified" in the 2006 tax year. Qualified dividends possibly entitle holders to lower tax rates as per "The Jobs and Growth Tax Relief Reconciliation Act" of 2003. ADR holders should contact their usual intermediary for details on tax reclaim. See similar questions...

A cash payment, using profits, announced by a company's board of directors and distributed among stockholders. Dividends may be in the form of cash, stock, or property. All dividends must be declared by the board of directors. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move all that much, but the dividend attempts to make up for this. It is not important for stocks to pay dividends. See similar questions...

We generally try to highlight whether dividends for individual securities we feature in the newsletter qualify for the reduced 15% tax rate, are taxed as ordinary income, are treated as long-term or short-term capital gains or return of capital, are subject to unrelated business taxable income, or any combination of such tax treatments. However, the tax treatment of any one security is often not a straightforward matter. See similar questions...

Dividends from taxable Canadian corporations enjoy beneficial tax treatment because of the dividend tax credit. Since dividends are paid out of a corporation’s after-tax income, they have already been taxed at the corporate level. To prevent double taxation, a dividend tax credit is allowed to the individual who receives the dividend, to offset some or all of the corporate tax paid. Small business corporations receive preferential tax treatments at the corporate level. See similar questions...

For information regarding the tax implications of share ownership, please consult your tax adviser or accountant. Alternatively, contact the Australian Tax Office (ATO) or visit their website at www.ato.gov.au. See similar questions...

Registered stockholders can get information on our dividend investment plan by calling Merck Stockholder Services at 1-800-831-8248 (United States and Canada only). Merck's family of medical references, which are published on a not-for-profit basis, include The Merck Manual of Diagnosis and Therapy, The Merck Manual of Medical Information - Home Edition, The Merck Manual of Geriatrics, The Merck Veterinary Manual, and The Merck Index (an encyclopedia of chemicals, drugs and biologicals). See similar questions...

Microsoft paid a special dividend of $3.00 per share to shareholders of record on November 17, 2004. The special dividend payable date was December 2, 2004. See similar questions...

Yes. Those assets have been taxed with income tax, payroll tax, sales tax and capital gains tax, as well as other taxes. See similar questions...

Yes! In 2005, in Ontario, the benefit of the small business deduction is eroded where the company and its associated corporations have combined taxable incomes, including investment income, in excess of $400,000, with the full clawback occurring at $1,128,500 of combined taxable income. See similar questions...