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I receive "qualified dividends" from my investments. Does that impact my personal income taxes?

If you have investments that include securities, you likely receive either ordinary dividends, qualified dividends, or both. The advantage to receiving qualified dividends is that they are subject to the same rate as long-term capital gains, which generally is less than your ordinary income tax rate. In contrast, ordinary dividends are taxed at your ordinary income tax rate (whatever that may be for a given year).

 

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