Ordinary dividend

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Flag of the United States.svg.png This article contains details specific to United States (US) investors. It does not apply to non-US investors.

Ordinary dividends include all taxable distributions that aren't treated as long-term capital gain.[note 1] Ordinary dividends can be either qualified dividends, taxed at preferential capital gains rates, or non-qualified dividends which are taxed at income tax rates.[1]

Notes

  1. The instructions for Box 1a, IRS Form 1099-DIV state: Enter dividends, including dividends from money market funds, net short-term capital gains from mutual funds, and other distributions on stock. Include reinvested dividends and section 404(k) dividends paid directly from the corporation. Include as a dividend the amount of the recipient's share of investment expenses that you report in box 5.

References

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