Are dividends always taxable?

Dividends are taxable; qualified ones taxed at lower rates, non-qualified as income.

Disclaimer: Carbon Collective is not a tax advisor. Consult a tax professional for assistance with tax forms and filing.

Dividends from investments in non-retirement accounts are generally taxable. Qualified dividends, which meet specific IRS criteria, are taxed at the lower capital gains rates, while non-qualified dividends are taxed at ordinary income rates. Dividends reinvested in your account are still taxable, so it’s important to review your 1099-DIV form closely.