What tax rate do you pay on cash dividends?

Answer by  Chaneygirl (1755)

That would depend on if they are qualified or not. If they are not qualified, they are taxed at your regular income tax rate. If they are qualified, they can be taxed at 0%, 5%, 15% or 28% depending on your income level. When dividends are reported to you on form 1099-div, qualified vs non qualified should be indicated.

Answer by  sbohanon (36)

Corporate dividends received between January 1, 2003 and December 21, 2010 are taxed at long-term capital gain rates of 5 or 15%. These eligible dividends must be from a domestic corporation or a qualified foreign corporation.

Answer by  naveensolanki (31)

no tax at all as dividends are paid after deducting taxes. All the investors are partners. same income cannot be taxed twice