What is the difference between "ordinary dividends" vs "qualified dividends"?

8 replies
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Which must I pay tax on? Ordinary? Or Qualified dividends?

TurboTax Premier Online

null725Answer

Level 13

Both ordinary dividends and qualified dividends are taxable.

Ordinary dividends are taxed at your ordinary income tax rate.

Qualified {because the company issuing the stock meets certain defined requirements} dividends are taxed at your lower long term capital gains rate (either 0% or 15%)

null725Answer

Level 13

Both ordinary dividends and qualified dividends are taxable.

Ordinary dividends are taxed at your ordinary income tax rate.

Qualified {because the company issuing the stock meets certain defined requirements} dividends are taxed at your lower long term capital gains rate (either 0% or 15%)

genobizz

Level 2

This is helpful. Where do we go from here?

genobizz

Level 2

I no longer use a professional to do my income tax return. That was for 2012.

My financial life suffered a great deal in 2013. I could not afford the $350.00 fee I was charged in 2012. I am fairly intelligent. I will almost enjoy doing it myself with Turbo Tax.

genobizz

Level 2

I thought I commented several times,Can we get to doing some paper work?

genobizz

Level 2

I'm ready to go but have limited time to devote to this task.

I'll do my best.

James Strauss

Level 2

I believe that TurboTax has an error in taxing "qualified dividends". I say this.....I've been a CPA for many years. Please contact me by email or telephone so I can discuss it with TurboTax. Thank you.

BillM223

Level 15

@James Strauss

Let me give you several choices:

1. Describe the issue here in the Community; if you give us enough detail, we will try to recreate it and pass it on to the developers.

2. Call in for phone support and describe the situation to the agent. (NOTE:

The Free Edition of TurboTax does not provide phone support. If you have a question, you can ask it here on the Community and we will try to help you.

If, however, you are using a paid version of TurboTax, please see this TurboTax FAQ.)

3. If you received a notice from a taxing agency because of this situation, please file a claim with the Tax Accuracy Calculation Group at https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-100-accurate-calculation-guarantee-or-100-accurate-expert/00/26065

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BillM223

Level 15

P.S. when you answer, tag me using "@" followed by "BillM223" (all together).

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