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SmileyBlair11
Level 1

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

Would it be...  1000 shares of apple is $130 each.  That's $130,000.  Take $130,000 times .6% which is $780 bucks.  Then, $780 by my fed tax rate of 22% for a whopping $171 tax bill.  Is this correct?
8 Replies
MSCO9241
Level 4

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

probably not.  depending on your taxable income the rate could be 0%, 15% or 20%   cant tell you what state rate is 

 

 

your actual dividends if you held AAPL all year will be  $807.50  ($205 for the last 3 quarters and $192.50 for the first quarter). AAPL changed the quarterly dividend rate starting in the second quarter of 2020. the yield only reflects the last dividend paid times the number of times a year it's paid divided by the current market value. 

SmileyBlair11
Level 1

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

Awesome.  Basically.  Take each quarters div payment and multiply it by the numbers of shares owned.  Add all four up and take that total times 0, 15, or 20.  via where ones income falls.  Thank you so much.  And yes.  Everything I own is longer than a year.  

Mike9241
Level 15

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

the tax rate on AAPL dividends is a little more complicated.  AAPL dividends are qualified dividends and a special rule applies to them and net long-term capital gains.  TT automatically uses the qualified dividend and long term capital gain worksheet to determine the tax.  

if you want to see the worksheet you can use the one from the 2019 instructions on page D16. 

https://www.irs.gov/pub/irs-pdf/i1040sd.pdf 

 

maybe  a better way to say what the tax rate on qualified dividends is  - is to say it can range from 0 to 20%

for example in 2019 a single taxpayer with $100000 in qualified dividends and $25000 in other taxable income would pay a tax of about $12800 on the dividends and about $2800 in taxes on the income 

fanfare
Level 15

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

Basically, look at your consolidated 1099-B in Feb under the "Dividends" section to find out what are your dividends for the year. Besides reporting as "qualified dividends", there's not a thing you can do about it.

 

If this is all happening in an IRA, never mind.

SmileyBlair11
Level 1

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

It’s a taxable account.  Wanted to know how to figure it as I look at something to purchase.  Ex:   I’d I buy 1000 shares of Apple.  Or 1000 shares of JNJ etc etc.  And if I do buy “x” what would have been the tax ramifications for each company.   Which would go into my calculations if I am to purchase it or not.  Make sense??  Tryin to make my taxable account as efficient as possible.  

fanfare
Level 15

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

Study up on the factors that make a stock "a buy".

record of growth, future prospects, price, state of the economy, etc.

Dividends are just one factor to consider.

 

Exxon-Mobil pays over 8  1/4 percent dividend, 

but there is fear they may cut that dividend, or go out of business altogether. When COVID Is over, Exxon will climb.

SmileyBlair11
Level 1

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

I study up on things.  I simply wanted to know how to figure taxes when it’s a dividend in a taxable account.  And with Exxon having to borrow money just to pay it’s dividend.  I’m not so sure it’s a good long term hold.  

fanfare
Level 15

What is the calculation on figuring tax on stock dividend. Ex: Apple yield is .6%. Last div was .205. If one had 1000 shares. How would I figure what I owe?

COVID will be over in a year or two. and air travel will resume.

That's not really a long term trade, just enough to get LT capital gains treatment.

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