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Ord Dividends

How do I reduce Ordinary Dividends and mange best to reduce taxes

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1 Reply
BillM223
Expert Alumni

Ord Dividends

One way would be to change your investments so that the assets that were giving you ordinary dividends are now assets that give you qualified dividends. This means that the assets are generally US stocks and otherwise qualify for capital gain treatment. See the IRS' discussion on Qualified Dividends here.

 

In addition, you can also invest in municipal bonds (often called "muni(s)") which are generally tax-free on the federal level, although they may be subject to state income tax (particularly if you are not a resident of the state that the municipality is in).

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