How to Pay $0 in Taxes on Dividends!
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
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In this video, we discuss tax implications on dividend payments and how you could potentially pay $0 in taxes on dividends! Let me know your thoughts in the comments below!
How to Pay $0 in Dividend Taxes: dividendology.substack.com/p/...
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People fail to forget that dividends are money your not physically working for so theres a big difference between working to earn 100k a year vs waking up and receiving the 8k a month
So true!
Pimp those dollar bills ya
yea I blow unearned income a lot more than earned. I mostly collect dividend checks but now set up a commercial bee farm to keep me entertained.
@@mathgasm8484 wait like honey bee bee farm lol hell yea I love it
@@mathgasm8484do you make good profit with the bee farm?
eye opener. loved it
My goal is 100k in dividends annually from the roth and 100k from my regular brokerage account 🎉
Well explained. Thank you
You sir have earned a subscriber
Yeah, but if you're like most people saving in a 401k, the withdrawals are taxed as ordinary income.
Best to have qualified dividends in a taxable brokerage
Cool!!! I live in South Dakota. Love it!❤
Thank you. Very informative channel. Subscribed.
Thank you!
Hello, what do you think of Allianz, a german
insurance company with a great dividend history?
How did you make the investment dashboard? The one on your series thing, I can’t find it on your channel pls make a vid on how to do it or give me the link to the vid thank you if you do it I love watching your vids a it helps so much😀
Does that still apply if your gross income single and married is higher than that?
Germany is known for complicated laws, especially tax laws but even they say general 25% capital gains tax
Boo taxes
Facts
Thanks for this. Will you make (or do you already have) a video on the proposed tax changes that the current president wants to implement next year?
Wasn’t planning on it but that is an interesting idea
🗣️We are tax evading with this one🔥🔥🔥🔥
😂😂
Facts g!
Well all you have to understand is which dividends you recieve and the tax bracket your in. There's a tax bracket for qualified dividends which are added to the total amount you make annually. Non qualified dividends also have a tax bracket. It's easier to pay no taxes on dividends if your married because the threshold is higher.
Meaning if my wife makes 60k from her job and I get dividends in the amount of 20k for the year they add the 20k to her 60k which is 80k and because we're under the threshold I pay no taxes 0% for the 20k in dividends from my investment income. The roth ira is all tax free because the money contributed is already taxed since its from your 9-5 income.
Just curious has anyone attempted to read the tax code book? It's about 4k pages lol and the whole thing explains to you how not to pay taxes legally lol. Evading will get you prison following the tax code book will keep you wealthy. Just saying🤫
I just got my first dividend payment from LVMH stock and those French commies charged a 25% tax on the payment! lol! LVMUY was the first foreign stock I ever bought, so I did not expect to pay taxes on it in a SEP-IRA (plus a small management fee!). Something dividend investors need to be mindful of when buying foreign stocks. Also, how do you track that in your portfolio spreadsheet? Do you record the full dividend and just reduce the cash amount or do you record the net amount?
How do we know if a dividend is qualified? Where can I find out all of the companies that pay qualified dividends?
Typically, your qualified* dividends are quarterly. Month dividends, like from REITS are not. So put those ordinary dividends in a tax advantaged account
But if you look at the dividend report in your brokerage it will tell you if it was qualled or not.
What he said or just Google the company in question.
How do you know if a company pays qualified dividends or not? I know Coca Cola like you said, but what about Pepsi or Apple? How can I know? Is there a list?
Those companies pay qualified. Typically REITS, covered call ETFs, and BDCs pay ordinary dividends.
For non-us residents, I'm guessing a dividend accumulating ETF is the only option
Not sure why, but you missed WA State where we also have no state income taxes. A common mistake on posts listing taxes.
Nice catch!
I am bit confused, so in order to not get a penalty for withdrawing our dividend earnings we should be investing in a regular brokerage account, right? I have a Roth IRA and a regular brokerage account. But I don’t have enough money to max out my Roth and also invest in the regular brokerage account. Which should I prioritize then? Any suggestions. I want to live off my dividends before I’m 59 😂
General rule of thumb is to max your Roth contributions and then put whatever else you can into your brokerage.
Again, this is a general rule of thumb, but the main differences between your Roth IRA and your brokerage account is that when you pull your money from your Roth IRA down the line, you won't get taxed on it at all. There are some specific rules for them. For example, you have to have it open for a lease 5 years and then I believe you have to wait until you are 59 and 1/2
Mike if you want to start collecting dividends to live off of before you’re 59.5 years old, you need to do so using a brokerage account and be subject to taxes on those dividends. There is no way around it. Your tax bill will depend on your annual taxable income each year. The dividends generated by investing in your Roth Individual RETIREMENT Account (IRA) can’t be collected without penalty until you meet the 59.5 year tax requirement. You need to be the one to choose how you split your money between your retirement & non-retirement (brokerage) accounts - and don’t think this is a “one or the other” thing because you can simply invest in both. The hard part is making enough money to invest in the first place
@@ChrisFromLongIslandthank you so much Chris for the explanation. That makes sense, I’ll do my best to contribute to both then. As I do want to be able to have some income from it before I am 59. Thanks again
@@MajeedBellemakes sense, thank you for the explanation.
Now if only I Could fully avoid withholding dividend tax from the US. :(
Same got 40 bucks they took 30 I was like wtf.😢
I would like to hear you talk about how to not get soaked in federal income taxes on income earned in a trust where ordinary income/gains starts at 37% at only about 14K in taxable income.
I hold most of investments in a HSA or a Roth IRA… probably won’t live long enough to spend any of it later in life but at least my family will be better off from my hardworking and saving.
The real inflation rate is above what dividends pay so you are losing purchasing power.
This is why I buy companies that pay qualified dividends.
You can buy O and keep it in a Roth IRA. Thats what I have....
6:11 taxeses 🙃
Will smith the like button y’all!
They sure want everyone to be married...
And risk 50% of your portfolio in a divorce
Youguysarepayingtaxes?.jpg
First 🥇
🎉
Crying in Denmark we pay 27% of the first 8000$ then 43% in stocks
YIKES!!!