Timeline for Question about Tax Information from a Prospectus
Current License: CC BY-SA 3.0
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| Feb 23, 2012 at 15:33 | comment | added | Dilip Sarwate | As a minor addition, dividends in the US are of two kinds. Ordinary Dividends are taxed as ordinary income while Qualified Dividends receive special treatment. The mutual fund will tell you that it paid $x in dividends of which $y are Qualified Dividends, and you enter these amount as appropriate on your income tax return and compute taxes appropriately, typically paying at a lower rate on the $y$ of Qualified Dividends than on the $x-y of Ordinary Dividends. Money-market fund dividends are always Ordinary Dividends; stock market fund dividends are a mixed bag. | |
| Feb 23, 2012 at 15:23 | history | answered | Jason R | CC BY-SA 3.0 |