Dividend Taxes: Everything Investors Need to Know

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  • Опубликовано: 5 ноя 2024

Комментарии • 117

  • @Patriciabanks5
    @Patriciabanks5 9 месяцев назад +93

    The utilization of after-tax money and tax-free growth makes opening a Roth IRA very advantageous. Through a careful guidance of my FA, I did not pay taxes on my withdrawals of $2.86 million when I retired.

    • @suzannehenderson5
      @suzannehenderson5 9 месяцев назад +5

      I don't regret the numerous financial mistakes I've made in the past since I've learnt from them. But the biggest one was planning my finances without consulting with a licensed financial counsel.

    • @emiliabucks33
      @emiliabucks33 9 месяцев назад +4

      Indeed, I did make use of a financial counselor. As I get closer to retirement, their advice has been really helpful. I thought compound interest on index funds wouldn't be sufficient because I started late. It's amusing how I've done better than colleagues who have more years of investment experience. I've profited more than $886k tax free.

    • @JordanPortales
      @JordanPortales 9 месяцев назад +4

      Please who is the consultant that assists you with your investment and if you don't mind, how do I get in touch with them?

    • @emiliabucks33
      @emiliabucks33 9 месяцев назад +4

      The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Carol Vivian Constable‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

    • @JordanPortales
      @JordanPortales 9 месяцев назад +2

      Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

  • @MonicaAguilera98
    @MonicaAguilera98 9 месяцев назад +110

    Well, I feel investors should be focusing on under-the-radar stocks, and considering the current rollercoaster nature of the stock market, Because 35% of my $270k portfolio comprises plummeting stocks that were once revered and I don't know where to go here out of devastation.

    • @MarthaRamirez09
      @MarthaRamirez09 9 месяцев назад

      @RobertGariepy56 I’m both a dividend and growth investor and there are Great dividend stocks out there! The trick is to diversify and put in enough to where you actually get good dividend payments Monthly. I made my first million from repositioning and rebalancing my stocks using a full-service broker so I invested and reinvested my profits.

    • @MarthaRamirez09
      @MarthaRamirez09 9 месяцев назад

      @StephanieYoder67 Her name is “Alice Marie Coraggio” can't divulge much. Most likely, the internet should have her basic info, you can research if you like.

  • @T500cal
    @T500cal Месяц назад

    Really helpful. The one thing holding me back from diving into income investing was the tax part of it all. This video was right up my alley.

  • @JohnDoe-xr5is
    @JohnDoe-xr5is Год назад +6

    1) Own the qualified dividend stocks in the taxable account (no tax up to a certain limit)....2) own REITS and BDC in IRAs (no tax) and 3) run away from MLPs. They can be tax nightmares. My view of MLP: There are other fish in the sea.

  • @eliorbilow8797
    @eliorbilow8797 8 месяцев назад

    Thanks for the video! It helped me get my head wrapped around how to file my taxes this season before I sit down with the pen and daunting tables!

  • @supercruchynoodle
    @supercruchynoodle 8 месяцев назад +2

    Past a certain income there is no advantage to IRA contributions as I have found out.

  • @vapingamers
    @vapingamers Месяц назад

    Dude loved this information. Thank you!

  • @Sharpshooter649
    @Sharpshooter649 8 месяцев назад +1

    4:30 The holding period requirement to make a qualified dividend is unnecessary: the Form 1099 given to you by your brokerage will classify all your dividends as Qualfied at the end of the year, whether you held for 61+days or not

  • @thomasasix8477
    @thomasasix8477 Год назад +5

    There is way too much information too fast, lol. I had to pause and rewind it a couple of times. Still, thank you for the content!

    • @3Dimensional3
      @3Dimensional3 6 месяцев назад

      You can change the speed of the video if necessary

  • @RubyRhu
    @RubyRhu Год назад +1

    I did not know about municipal security dividend funds. Thanks!

  • @Biz005
    @Biz005 Год назад +2

    Awesome video Dividend Bull!

  • @moriorinvictus
    @moriorinvictus Год назад +3

    Creator forgot to mention that Roth IRA *contributions* can be withdrawn at any time tax free.

    • @vevenaneathna
      @vevenaneathna 11 месяцев назад

      roth ira for poor people bro

  • @estrader6214
    @estrader6214 22 дня назад

    Great presentation! Aren't taxpayers required to pay dividend income quarterly?

  • @stephenhegarty6179
    @stephenhegarty6179 Год назад +1

    I thought I would have to pay taxes on dividends for IRA account that I have a substantial balance in SCHD …..thank you for the info

  • @havfun584
    @havfun584 2 месяца назад

    If dividend is my only source of income should I claim myself as self employed investor for the sake of medicare and social security tax?

  • @jasonluong3862
    @jasonluong3862 7 месяцев назад

    I am confused about the tax part of Traditional and Roth IRA. How does the IRS know what money is used in the contributions? IRAs are self managed unlike retirement accounts managed by my employer who knows which part of my salary money is pre-tax and post-tax, i.e the gross and net. With Roth IRA contributions, the money is out of pocket. Therefore it is in a way, already taxed because that money is from the net salary pay. At the end of the year, the IRS will take a portion of the balance from the IRA account as a tax? When I start withdrawing from it after the age of 59.5, whatever earning from this Roth IRA at the moment is not taxed? By contrast, with Traditional IRA, the IRS does not dip into the account’s balance at the end of the year. However, when the account is drained at 59.5 years of age, whatever accumulated earnings at that time will be taxed. This moment can be 40 years into the future. How does the IRS know how much tax will be levied against the earnings? Will it do so retroactively using the tax rates of all the previous years or will it use the tax rate of the withdrawal year?

  • @soniakhameed3412
    @soniakhameed3412 4 месяца назад

    If we open an LLC account, how much will be taxed on our dividend?

  • @michaelantoniojeter9865
    @michaelantoniojeter9865 10 месяцев назад

    Thanks for your videos - love them. does a subsidiary have to pay tax on income on paid to parent as as dividend?

  • @jonathanfoster2263
    @jonathanfoster2263 Год назад

    when it comes to an standard IRA does it matter if your distribution is a qualified or non qualified dividend? Or is it all just considered income?

  • @robertwatts4941
    @robertwatts4941 Год назад

    Thanks, I am keeping this in a playlist. I will listen a few different times. Always learn something on this channel.

  • @rebeccaartgallary
    @rebeccaartgallary Год назад +9

    I started investing in the stock market because of dividends. What matters, in my opinion, is that if you invest and earn more money in addition to dividends, you will be able to live off of dividends without selling. It implies that you can pass that on to your children, giving them a head start in life. I've invested over $600k in dividend stocks over the years; I continue to buy more today and will continue to do so until the price lowers even further

    • @purplebliss6875
      @purplebliss6875 Год назад +4

      It's always inspiring to hear from a veteran investor who has weathered the storm and come out on top. When your portfolio turns from green to red, it might be unsettling, but if you have invested in great companies, you should just keep adding to them and stick with your plan.

    • @VanPelt54u7fcyde57
      @VanPelt54u7fcyde57 Год назад +2

      I wholeheartedly concur, which is why I appreciate giving an investment coach the power of decision-making. Given their specialized expertise and education, as well as the fact that each and every one of their skills is centered on harnessing risk for its asymmetrical potential and controlling it as a buffer against certain unfavorable developments, it is practically impossible for them to underperform. I have made over 1.5 million dollars working with an investment coach for more than two years.

    • @lindamattalom
      @lindamattalom Год назад +2

      we’re only just an information away from amassing wealth, I know a lot of folks that made fortunes from the Dotcom crash as well as the 08’ crash and I’ve been looking into similar opportunities in this present market, could this coach that guides you help?

    • @VanPelt54u7fcyde57
      @VanPelt54u7fcyde57 Год назад +1

      My Financial Advisor is AMY JEAN ANDERSEN. I found her on a CNBC interview where she was featured and reached out to her afterwards. She has since provide entry and exit points on the securities I focus on. You can run a quick online research with her name if you care for supervision. I basically follow her market moves and haven’t regretted doing so.

  • @robertm.0034
    @robertm.0034 Год назад

    Great video. Question: In a non retirement brokerage account, are dividends taxed differently if I choose to reinvest vs. cash out?

    • @dominickolas
      @dominickolas Год назад +1

      No, unfortunately, whether you get the money in your pocket, or just flipped it over into the drip, IRS says you got paid.

    • @robertm.0034
      @robertm.0034 Год назад

      @dominickolas thank you. But are they taxed at different rates/percentages if I cash out vs. reinvest?

    • @dominickolas
      @dominickolas Год назад

      @@robertm.0034 no. The way you should imagine it, is your taxes. If you did put in your pocket. You were paid. Then you just spent your money. And they did not care what you spent your money on.

  • @5dumars
    @5dumars 9 месяцев назад

    Confirmed that TurboTax requires a higher package for K-1 filings

  • @ComicVerseComics
    @ComicVerseComics Год назад

    Can you do an episode on:
    EPR Properties: ERP
    Avalon Bay communities: AVB
    Medical Properties trust: MPW
    Prologis: PLD
    Any and all help and guidance you provide is truly a blessing. Thank you for your help and great content.

  • @zanshinhabit6212
    @zanshinhabit6212 Год назад +3

    A few points to consider. Using IRS rule 72T you can access money in a 401k, IRA, or rollover IRA before 59 1/2 without paying the 10% penalty as long as you are no longer actively contributing to the fund. Additionally, if you deposit after tax money into a traditional IRA you can roll it into a Roth IRA and get around the income and value cap. It’s commonly referred to as a back-door contribution.

    • @Wurstbrot5555
      @Wurstbrot5555 Год назад

      Man. I am from Germany but reading this makes me forget how crazy our tax system is!

  • @ususopen
    @ususopen Год назад +3

    Super helpful. Thanks for putting these together. Just want to add one thing: Dividends received from REITS enjoy a 20% deduction. So compared to BDC and other high dividend stocks, REITS have greater tax advantage.

  • @GregK235
    @GregK235 Год назад +4

    Thanks for the overview on taxation, especially the recommendation/warning to consult a tax professional for international stocks & pass-thru entities, particularly MLPs.

  • @ROCO-n5r
    @ROCO-n5r Год назад

    Thank you so much. great explanation

  • @lordbyronkeith9488
    @lordbyronkeith9488 Год назад +1

    This is exactly why I'm totally hooked on your channel and why I hold it in such high regard! Huge props and thanks for all the valuable insights and why I ardently recommend your channel to acquaintances harboring aspirations of venturing into the captivating realm of investing. Since embarking upon my own investing odyssey, your invaluable guidance has masterfully dispelled any trepidation and enigma that enshrouded this profound undertaking. Thank you!

  • @stonersgym8120
    @stonersgym8120 Год назад +4

    One question for IRA's would be do the dividends you reinvest count toward your contribution limit?

    • @shereeblakemore5070
      @shereeblakemore5070 Год назад +4

      No, your dividends are reinvested outside of your annual contribution limit, depending on your age.

    • @stonersgym8120
      @stonersgym8120 Год назад

      @@shereeblakemore5070 Thanks!!

  • @mathiaspurner3791
    @mathiaspurner3791 Год назад +1

    damn never been this early before, not even living in the us tho

  • @SpeakerBuilder
    @SpeakerBuilder Год назад +1

    I found a list on line of all MLP's in the NYSE, and I now check an energy stock I am interested in against this list before purchasing stock in that company. The complexity of MLP's is not worth the trouble to me considering all the other alternative stocks I can buy that do not come with this extra burden. Excellent video on this topic, BTW, thanks again so much, your videos are invaluable to me, don't know where I'd be with my stock investments without your help.

    • @charlesrivers2647
      @charlesrivers2647 Год назад

      You can also have a MLP in a Roth IRA and not worry about anything as long as you are making LESS than $1000 in dividends a YEAR from that MLP.

    • @janshuster1426
      @janshuster1426 Год назад +1

      ​@@charlesrivers2647
      All well and good until they convert to a C Corp or are bought out.
      Don't ever hold in a retirement account.

  • @Apeiron242
    @Apeiron242 Год назад +1

    Taxes are the rent of living in civilization.

  • @dawsonstoneroad7549
    @dawsonstoneroad7549 Год назад

    Great topic

  • @TyroneCoseip
    @TyroneCoseip Год назад +1

    I'm from the Philippines and the NET dividends I get from my IBKR account is already 75% of the dividend announced (25% withholding tax). This is the usual in the Philippines as well with our withholding tax being 10% for dividends.
    For Americans earning dividends, does your brokerage account already deduct withholding taxes?
    Since it is the NET dividends that actually matters for expenses and such in daily life right?

  • @inicMich-rc5wo
    @inicMich-rc5wo Год назад +29

    I'm so happy I made productive decisions about my finances that changed my life forever,hoping to retire next year... Investment should always be on any creative man's heart for success in life.

    • @raphfelimax2713
      @raphfelimax2713 Год назад

      I agree with you and believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don't know who agrees with me but either way I recommend real estate or crypto and stocks.

    • @adamdouglas9888
      @adamdouglas9888 Год назад

      Yeah!! It would be more beneficial and yield more profit if you actually trade on cryptocurrency, I've been trading since the dip, I've made so much profit trading.

    • @arktom7335
      @arktom7335 Год назад

      How does this trading stuff work? I'm really interested but I just don't know how it go about it. I heard people really make it huge trading

    • @josehenry7205
      @josehenry7205 Год назад

      trading is easier with proper guidance, especially from a professional, Newbies who are not aware of how crypto truly works and wish to make profits from it, I would advise to invest with a professional like Fergus waylen, It helps secure and minimize the possibilities of losses.

    • @georgebasonathan4784
      @georgebasonathan4784 Год назад

      I'm honestly surprised that this name is being mentioned here, I stumbled upon one of his clients testimony last week in CNBC world news

  • @hannahdonald9071
    @hannahdonald9071 Год назад +25

    After watching this video, a lot of things now make sense to me. However, I have questions regarding sizing into a trade and also ETF/Digital assets portfolio management. Often times I see myself sizing in when my pre-determined zone is met but I’m unsure what has the best potential: going with a full size order or sizing more as my the price extends further into my zone. And how are people making $450K already in this first half of the year? Sometimes the psychological part of this is the most difficult!

    • @tampabayrodeo2474
      @tampabayrodeo2474 Год назад

      Mostly based on your comfort level with risk. Better off sizing in when things go your way when trading an account with mini futures or high leverage. In this manner, your initial stop loss is still a respectable one. However, if you trade micros or with minimal leverage, you might as well start at "full size." Although it increases the win percentage, micros still have a stop loss that is not very near to the entrance. IMHO. For your own convenience, I would advise you to seek professional advice.

    • @graceocean8323
      @graceocean8323 Год назад

      @finestbearhug2951 I've been looking at comparable opportunities in the current market because I know a lot of people who made fortunes from the Dotcom crash and the 2008 crash. Could this consultant who helps you be of any assistance?

    • @mcginnnavraj4201
      @mcginnnavraj4201 Год назад

      She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.

    • @user-lx1dy3iw1z
      @user-lx1dy3iw1z Год назад +1

      Scam alert ⚠️ 📢

  • @danharkness7868
    @danharkness7868 Год назад

    This information was great. Thank you. So much to learn.

  • @peoriaos6627
    @peoriaos6627 Год назад

    Great video!

  • @archoplites
    @archoplites Год назад

    Thanks for covering this subject. Understanding taxation of investment/retirement income should be a part of your investment strategy...not an afterthought. With my local work investing group, I've been pushing tax consideration and planning when evaluating dividend income along with other sources of income.

  • @sobo679
    @sobo679 Год назад

    There's also the backdoor roth.....you can max out your 401k then convert to roth. There are some restrictions to what is the max amount and when you can convert (might not be allowed until you leave that particular job, it depends on the provider). If you do this in the same tax year, there is no tax consequence.

  • @lonewanderer3603
    @lonewanderer3603 Год назад +1

    I can only imagine taxes will increase in the future, so I use the Roth retirement accounts.

    • @vigilantezack
      @vigilantezack Год назад

      While that might be true, the idea is that in retirement, you don't need that much money to live on, expenses are lower, and you take home less income from your retirement accounts, thus you will be naturally in a lower tax bracket. If you only need to live on $45k in retirement, married let's say, you're not likely in a large tax bracket anyway. But when you're younger, if you make a lot of money, getting the tax break NOW can save you more money overall.

  • @ugot1try
    @ugot1try Год назад

    Thanks so much for this, just starting to build up a taxable account outside of my Roth IRA and 401k

  • @InvestersEdge-lm6zl
    @InvestersEdge-lm6zl Год назад +1

    Great video, i did notice one mistake concerning the roth ira withdrawals before 59 1/2. In a roth you are allowed to withdraw your contributions at anytime however you cannot withdraw your earnings , currently i have 16,000+ in my roth and i contributed 12,500. If i wanted I could withdraw 12,500. I am unable to withdraw the amount over that though without paying penalties(also; see reply below)

    • @InvestersEdge-lm6zl
      @InvestersEdge-lm6zl Год назад +2

      Also another tax disadvantage to the roth is that you have to wait 5 years after opened your roth to withdraw(without penalty)your “gain” any amount over the amount you contributed to it (not including rollovers). Even if you are over 60.

    • @lonewanderer3603
      @lonewanderer3603 Год назад +1

      Thank you for that information. I didn't know that.

    • @InvestersEdge-lm6zl
      @InvestersEdge-lm6zl Год назад

      @@lonewanderer3603 no problem, i love my roth and try to put all my retirement money in there

    • @vevenaneathna
      @vevenaneathna 11 месяцев назад +1

      bro i emptied 80k out of my IRA coz i went back to school. tax free penalty free. loopholes

  • @davesites
    @davesites Год назад

    👍🌅

  • @SpeakerBuilder
    @SpeakerBuilder Год назад

    For the interested viewer, I'd like to share a few things I have learned. First, whether a stock pays qualified vs ordinary dividends is very hard to discover ahead of time, and my alternative strategy involves buying a small amount of a stock and seeing over time what type of dividend it is paying, then determine whether to buy more of that stock and where to put it, since I am trying to put all my ordinary dividend paying stocks into my Roth where I don't have to worry about the tax rate. Second, whereas initially I was obsessed about the higher tax rate of ordinary dividends, I have since learned after doing some simple calculations that compared to a stock that pays a qualified dividend, if I consider an alternative stock that pays an ordinary dividend but pays just one percent higher a dividend rate, that increase of one percent will compensate for the higher taxes paid on the ordinary dividends. So I no longer worry about the dividend tax rates. Finally, some stocks pay a combination of qualified and ordinary dividends along with interest and return on investment funds. There is nothing simple about stocks.

  • @dwiz_9336
    @dwiz_9336 Год назад

    You literally read my mind dude, and I was just gonna ask about dealing with Taxes

  • @superbdiamondrange
    @superbdiamondrange Год назад

    Dt ft

  • @boomer8066
    @boomer8066 Год назад

    yes thank you i was wondering about this

  • @richardm654
    @richardm654 Год назад +1

    You can withdraw your original deposits from a roth penalty free any time. It is called the basis and you will need to keep track of this. You will be penalized on any earnings you withdraw early. Also, MLP's are tax free in a roth only on the first $1000 in dividends earned.

    • @hey123pow
      @hey123pow Год назад

      Thank you for correcting this point!

    • @vigilantezack
      @vigilantezack Год назад

      Is that first $1000 for all time accumulated or something like first $1000 earned per year or?

    • @richardm654
      @richardm654 Год назад

      @@vigilantezack First $1k on dividends in a year. Look up to verify exactly.

  • @Sharpshooter649
    @Sharpshooter649 Год назад

    4:31 I also heard that the 60 day holding period must be unhedged without options (you can’t have sold covered calls on the dividend paying stock). Is that true?

  • @wholeNwon
    @wholeNwon 3 месяца назад

    Very good guide except that you should remove the word "THERE'S" from your vocabulary since you almost always used it incorrectly. Presenting important information with third grade grammatical mistakes is unsettling.

  • @Lou_Snuts
    @Lou_Snuts Год назад +2

    The rule that dividends are taxed in the year received is not entirely correct. In cases where the "Ex-dividend" date falls in, for example December of one year, but is paid in January of the next year, the dividend is "constructively received" in December. Thus, it must be included in a taxpayer's dividend income in December.
    The same rule holds true for dividends from non-public "C" corporations.

  • @Azaazbuka
    @Azaazbuka Год назад +2

    400k in qualifying dividends is the goal. 15% max on taxes if you're married 😊

  • @mmar161
    @mmar161 Год назад

    Ended up costing me more to do my taxes bc of the LP form then what I made in the stock.

  • @GrayBeard64
    @GrayBeard64 Год назад

    Please focus on the individual holdings video series...you keep jumping around on topics instead of finishing the series....please and thank you

  • @PrivateUsername
    @PrivateUsername Год назад +1

    Invest in your 401(k) since you can retire at age 55 instead of waiting until 59 1/2. Google "Rule of 55 401k". So in addition to being able to invest over $50k a year (total), you can retire earlier than with a regular IRA.