Today TaxMama hears from TW in the TaxQuips Forum who wants an update. “Does any one know how much is the tax on stocks gains and dividends earned from stock.”
Dear TW,
Now that we have a new law, the federal maximum tax on long-term capital gains is 15% – though it could be a low as 0% in the lower tax brackets.
This same tax rate applies to qualified dividends – generally from publicly traded US corporations
whose stock you’ve held for designated periods of time.
Rita Lewis an Enrolled Agent from CT adds a reminder that short term capital gains and dividends are taxed at your ordinary tax rates.
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