What are the federal income tax rates? I’m talking about investments. I heard there’s one tax rates on savings account, a different tax rate on short term capital gains, a different tax rate on long term capital gains, another tax rate on dividends, and so on. Is there a chart somewhere that shows these rates so I can consider tax consequences of how I invest my money?
2 Responses to “What Are The Federal Income Tax Rates On Investments?”
They are all taxed at the same rate…..your rate depending on your income. The IRS no longer treats long term / short term differently. All the accounts you asked about are just entered on the 1040 as equal additions to your income.
Long term (+ 1 year) capital gains are taxed at 15%. Short term at your regular income tax rate. Qualified dividends at 15%.