What is the taxation of foreign dividends?

In the state of New York, foreign dividends are subject to taxation. Foreign dividends are distributions of profits made by foreign companies to shareholders in the United States. Under the U.S. tax code, foreign dividends are considered income and are subject to taxation. The tax rate on foreign dividends depends on the tax rates applicable to the specific country from which the dividends originate. For instance, foreign dividends from countries with a higher tax rate than the U.S. will be subject to taxation at a higher rate than those of countries with a lower tax rate. In addition to federal taxes, foreign dividends are also subject to applicable state taxes. In New York, the applicable rate is 7.1% as of 2020. When calculating the total tax due, residents must also take into account any other applicable deductions or credits that may be available depending on their individual circumstances. The taxation of foreign dividends can be complicated, especially if one is also a foreign resident in another country. In this case, the individual may be required to file a foreign tax return to report any income from foreign sources, including dividends. To calculate the correct amount of taxes due, it is important for taxpayers to determine the applicable tax rate for the foreign country in which the dividends originate.

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What is the taxation of foreign dividends?

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