Stocks

Are Dividends Earned Income?

Unlike passive income, ordinary dividends are taxed as income by the Internal Revenue Service (IRS). Are dividends earned or unearned income? An example of unearned income is a taxable interest, regular dividends, and capital gain distributions. Unemployment compensation, taxable social security benefits, pensions, annuities, debt cancellation, and trust payouts are all included. Publication 17, Your

Are Dividends Earned Income? Read More »

Are Dividends Equity?

Because they are a payout of a company’s accumulated profits, dividends are not considered an expense. Thus, dividends do not reflect on a company’s financial statements as a cost. Dividends, on the other hand, are viewed as a distribution of a company’s stock. Are dividends part of equity? Shareholder equity is impacted indirectly by dividends,

Are Dividends Equity? Read More »