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New Member

Are the Qualified Dividends taxed on my return?

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New Member

Are the Qualified Dividends taxed on my return?

Yes, but Qualified Dividends are taxed at capital gains rate.  Ordinary Dividends on Line 9a of your 1040 are taxed at regular tax rates.  On the Qualified Dividends and Capital Gain Tax Worksheet—Line 44 your Qualified Dividends from 1040 Line 9b are entered on Line 2. They are included in the part of your income that is taxed at the 15% rate.. 

It is a complicated calculation.  The link above is a blank worksheet, so you can see what it looks like. If you want to see your own worksheet, you will have to view your tax return and look for "Qualified Dividends and Capital Gain Tax Worksheet" in your forms.

Notice on the worksheet that there is an exclusion(Line 8).  That is deducted from your taxable Qualified Dividends and Capital Gains. It is possible, depending on your other income, for your Qualified Dividends to be completed excluded from taxes.

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