2019 Dividend Tax Rate Calculator Usa

Dividends are a key part of investing in the stock market, but understanding how they're taxed in the USA can be confusing. This calculator helps you determine your 2019 dividend tax rate based on your total income and the type of dividend you received.

How the 2019 Dividend Tax Rate Works

In 2019, the US tax system treated dividends differently depending on whether they were qualified or non-qualified. Qualified dividends are those from US companies that meet certain requirements, while non-qualified dividends are typically from foreign sources or don't meet the qualified criteria.

Key Formula

Dividend tax rate = Ordinary income tax rate + 0% (for qualified dividends) or 0-38% (for non-qualified dividends)

The tax rate on qualified dividends is determined by your ordinary income tax rate, while non-qualified dividends are taxed at a flat rate of 38% if your ordinary income is above $441,450 (single) or $496,600 (married filing jointly).

Calculation Method

The calculator uses your total income and the type of dividend to determine your tax rate. Here's how it works:

Enter your total income for 2019
Select whether you're filing as single or married
Choose whether the dividend is qualified or non-qualified
Click "Calculate" to see your tax rate

Note: This calculator uses the 2019 tax brackets and rates. Tax laws change annually, so these rates may not apply to other years.

2019 Tax Brackets

The 2019 tax brackets for ordinary income were as follows:

Filing Status	Tax Rate	Income Range
Single	10%	$0 - $9,700
Single	12%	$9,701 - $39,475
Single	22%	$39,476 - $84,200
Single	24%	$84,201 - $160,725
Single	32%	$160,726 - $204,100
Single	35%	$204,101 - $510,300
Single	37%	$510,301+
Married Filing Jointly	10%	$0 - $19,400
Married Filing Jointly	12%	$19,401 - $78,950
Married Filing Jointly	22%	$78,951 - $168,400
Married Filing Jointly	24%	$168,401 - $321,450
Married Filing Jointly	32%	$321,451 - $408,200
Married Filing Jointly	35%	$408,201 - $612,350
Married Filing Jointly	37%	$612,351+

Qualified vs. Non-Qualified Dividends

Qualified dividends come from US companies that meet specific requirements, including:

Paying dividends for at least 15 of the last 20 years
Having a 10% dividend payout ratio
Not being a REIT or MLP

Non-qualified dividends are typically from foreign sources or don't meet the qualified criteria. They're taxed at a flat rate of 38% if your ordinary income is above the thresholds mentioned earlier.

Example Calculation

Let's say you're a single filer with $50,000 in ordinary income and receive $1,000 in qualified dividends. Here's how the calculation works:

Your ordinary income tax rate is 12% ($50,000 falls in the $9,701-$39,475 bracket)
Qualified dividends are taxed at your ordinary income tax rate (12%)
Your total dividend tax rate is 12%

In this case, you would owe $120 in taxes on your $1,000 dividend.

Frequently Asked Questions

How do I know if my dividend is qualified or non-qualified?

You can check with your brokerage or the company's investor relations page. Qualified dividends come from US companies that meet specific criteria, while non-qualified dividends typically come from foreign sources or don't meet those criteria.

What happens if I have both qualified and non-qualified dividends?

Qualified dividends are taxed at your ordinary income tax rate, while non-qualified dividends are taxed at 38% if your ordinary income is above the thresholds mentioned earlier. The calculator can help you determine your overall tax rate.

Are there any deductions or credits that can reduce my dividend tax?

Yes, there are several deductions and credits that can reduce your dividend tax, including the Qualified Dividends and Capital Gains Tax Act of 2012, which created the Qualified Dividends Tax Rate. You can consult a tax professional for more information.