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What is the difference between qualified and ordinary dividends?

April 26, 2017dividends qualified

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What is the difference between qualified and ordinary dividends?

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In 2003, Congress lowered the tax rates for most dividends and long-term capital gains. Dividends and long-term gains from equities, traditional preferred stocks, stock funds and foreign stocks that trade on a U.S. exchange qualify for the reduced rate and therefore are referred to as qualified.