What is the tax rate for dividends?

Washington has a two-tiered system for taxing dividends. For those earning less than $3,000 in dividends, the rate is 0%. For those earning more than $3,000 in dividends, the rate is 20%. This rate only applies to taxable income that is paid out in dividends. That means if you don’t receive a dividend or receive a dividend that is not taxable, it is not subject to the 20% rate. It’s important to note that these rates only apply to Washington state taxes. Depending on your income and other factors, you may also need to pay federal taxes on your dividends. The rates mentioned above apply to both non-qualified dividends and qualified dividends. Non-qualified dividends are not eligible for preferential tax treatment and must be reported as ordinary income. Qualified dividends are dividend payments that are eligible for a lower tax rate. In general, these dividends must come from a U.S. corporation, are paid in cash, and have been held for more than 60 days. In addition to the two-tiered rate for dividends, Washington also has a sales tax of 6.5%. This tax is typically taken out of purchases at the time of sale, and is not applicable to investments that are paid out in dividends. The tax rate for dividends in Washington is 0% for those who earn less than $3,000 in dividends, and 20% for those who earn more than $3,000. In addition, the state also has a sales tax of 6.5%. It’s important to note that these rates only apply to Washington state taxes, and you may need to pay additional taxes to the federal government.

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What is the tax rate for dividends?

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