Selective Dividend Reinvesting vs DRIP

[DRILLINDK]

One more question...what are the capital gains tax rate for dividends? I've heard various methods of being taxed from friends and places on the internet.

[Be Here Now]

(04-06-2014, 08:51 PM)DRILLINDK Wrote: One more question...what are the capital gains tax rate for dividends? I've heard various methods of being taxed from friends and places on the internet.

Dividend tax rates are separate from capital gains tax rates.

Dividend tax rates: http://en.wikipedia.org/wiki/Dividend_tax#United_States

Capital gains tax rates: http://en.wikipedia.org/wiki/Capital_gai...ted_States

[DRILLINDK]

Thank you! So just to clarify,

The long-term capital gains tax rate is 15% (0% for taxpayers in the 10% and 15% tax brackets, and 20% for taxpayers in the 39.6 bracket)?

[Be Here Now]

(04-07-2014, 09:20 AM)DRILLINDK Wrote: Thank you! So just to clarify,

The long-term capital gains tax rate is 15% (0% for taxpayers in the 10% and 15% tax brackets, and 20% for taxpayers in the 39.6 bracket)?

The LTCG tax rate is 0% for those whose ordinary income tax rate is 15% and below. The LTCG tax rate is 20% for those whose ordinary income tax rate is 39.6%. For everyone else the LTCG tax rate is 15%.