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makemyday55
New Member

I was just informed the dividend I received of $6300 which was reported as an ordinary dividend is in fact a qualified dividend. Does this change my tax obligation?

If less tax obligation should I amend my return?
1 Best answer

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MinhT
Expert Alumni

I was just informed the dividend I received of $6300 which was reported as an ordinary dividend is in fact a qualified dividend. Does this change my tax obligation?

Ordinary dividends are taxed at the ordinary income tax rates while qualified dividends are taxed at the lower capital gain rates. In any case, qualified dividends are always taxed at a lower rate than non-qualified dividends.

You cam amend your tax return to lower your tax liability and obtain a refund.

Please read this document for more information:

https://www.fool.com/knowledge-center/qualified-dividends-vs-ordinary-dividends.aspx


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1 Reply
MinhT
Expert Alumni

I was just informed the dividend I received of $6300 which was reported as an ordinary dividend is in fact a qualified dividend. Does this change my tax obligation?

Ordinary dividends are taxed at the ordinary income tax rates while qualified dividends are taxed at the lower capital gain rates. In any case, qualified dividends are always taxed at a lower rate than non-qualified dividends.

You cam amend your tax return to lower your tax liability and obtain a refund.

Please read this document for more information:

https://www.fool.com/knowledge-center/qualified-dividends-vs-ordinary-dividends.aspx


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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