The worst part about dividend investing is paying taxes on your dividend income. Nobody likes taxes, and although it’s something we don’t want to have to deal with, unfortunately there’s no way around it. However, when it comes to dividend taxes, there are ways you can avoid paying them, which we’ll be talking about in this video. I’ll be explaining how dividend income is taxed, and will share a couple of ways you can avoid paying taxes on your dividends.
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⏰ CHAPTERS ⏰
0:00 – Intro
0:58 – How Qualified Dividends Are Taxed
4:11 – How Ordinary Dividends Are Taxed
5:40 – Another Way To Avoid Dividend Taxes
6:40 – Inside My Roth IRA
The ideas and opinions presented in this video are meant for informational and entertainment purposes only, are not intended to serve as a recommendation to buy or sell any security in any account, and are not an offer or sale of a security. They are also not research reports and are not intended to serve as the basis for any investment decision….(read more)
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Ryne, you still have time to contribute to the Roth until the tax deadline date of 2023?
He leaves out other income, which most have, not to mention social security which all older have.
Your SCHD Video got me into your channel because I was deciding how to invest in my HSA. Keep up the good work! I’m about to get a $37k bonus (so $25k after taxes). What would you do if you were in my position? Don’t worry, I have strong opinions of my own and won’t interpret anything as financial advise!
and for all foreigners the tax rate is set at a fixed 30%…. no getting out of that one.
Nice overview. Two things: 1). You said that Roth IRA withdrawals were qualified dividends. My understanding is that Roth withdrawals are not taxed regardless. 2). Could you run those numbers with social security and a pension?
Hi Ryne, I’m new to the stock market. Very much interested with high dividend stocks. Before Invest, can you let me know what is wrong with MREITs like AGNC or NLY?
Thank you.
not financial advice but I thought you can continue to contribute for 2022 in 2023 so long as its before you file your taxes
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Found your account on Twitter and you have quickly become one of my favorite channels!!
Those who understand the game of taxes have much to gain… Always use tax advantage accounts!
Awesome video. What do you think about a future video, to discuss various quality REIT’s? Things seem to be changing rapidly…
Great video!
I've very glad I subbed. I figured the video was going to be like use a roth and rolled my eyes when I clicked the video….yet I learned next year I can go up to 6500 on my Roth now and also a bit about that itemized deduction. Great stuff man keep it up!
As of today, you have four months to max out your Roth…
Taxes for tax year 2022 will be our first after we retired. I'll have a little part time income + a chunk of long term capital gains + a small chunk of short term + qualified/ordinary dividends + CC Option premiums. Haven't started Social Security yet but we did Medicare+Part D+Medigap. Will be interesting to see what this will look like.
Does anyone own a Canadian bank, such as TD bought on NYSE? Please explain how those dividends are taxed for Americans? Thanks
Hey Ryne, you have until April to contribute to your Roth IRA for 2022.
7:15 Ryne you can still contribute to your Roth IRA until 04/15/2023 for the 2022 tax year, as long as you meet the income limits.
I just came across some fun info. The distributions on BST, a somewhat comparable vehicle to JEPI, are classified as long term capital gains which is highly favorable.
Another fun fact is that margin loan interest can be itemized if the funds are used for investment purposes. So you could theoretically yield the difference between the cost of the debt against the yield of a closed end fund and build this massive portfolio that just churns, rinse and repeat, where the debt you take on is yielding a higher return than the cost of the debt. Hella risky but fun to imagine.
So if you take on the debt during a high rate environment you can write off the rate while you build the position.
Reminds me of how banks sell our loans and pocket the difference.
I think they moved it up to 44,000 also what website is that?
Just in time, Thank you, very valuable information
Hey, so since all my dividend stocks/income is in a ROTH, i don’t have to worry about paying taxes?
You still have till April to max out for this year for your roth.
Great topic to discuss. May want to discuss in the future RMD and how that will effect your taxes and accounts. Thanks for your content.
This will be the first year filing taxes on my own. I will use turbo tax, super easy to upload csv forms. I’ll share my experience once I get it all done .
Very informative! Thanks for the info Ryne!
But Sascha said dividends were tax inefficient
With a progressive tax system we'll never out pay our income. In the grand scheme I'd rather keep paying a little more year after year than no longer continue to raise my income