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Thanks for this great article
Thanks for your comment Tawnya Dungey, have a nice day.
- Talitha Younglove, Staff Member
let me give you the tax implications of three things interest dividends and royalties they all sound kind of like the same thing but they aren't necessarily taxed the same way first interest interest income is ordinary income there is no social security component to it you can earn interest in the bank or a part of your investments but it's ordinary income second dividends there are two ways that your tax on dividends first a normal dividend is ordinary income much like interest but you can also have qualified dividends typically it's based on the length of ownership but that falls under capital gains treatment comes with a much less or a lower tax rate those are the good kind of dividends and finally there's royalties royalties are passive income again no Social Security component or se tax usually those are reported actually on your schedule eat a little food for thought but those are three different income streams and how they're taxed we know how important it is for you to keep your business running smoothly here at tax hive we can help with all of your tax and business service needs so you can focus in on what it is that you do best our entire team of experts is standing by ready to help out schedule a strategy session with one of our experts today
Thanks tonmolenf your participation is very much appreciated
- Talitha Younglove
About the author
I've studied computer architecture at University of Central Missouri in Warrensburg and I am an expert in probability theory. I usually feel grateful. My previous job was management consultant (analyst) I held this position for 16 years, I love talking about yo-yoing and knot tying. Huge fan of Jon Hamm I practice rollerblading and collect basketball cards.
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