Qualified dividend income received after 12-31-2002 has been taxed at the same rate used to calculate an individual?s capital gains tax ? at 15% maximum rate. Prior to 2003, dividend income was taxed at ordinary income rates.
There are a list of exceptions to what is qualified dividend income, including whether the income could be characterized as interest rather than a distribution of profits. ...
The 245 word solution discusses a tax law that changed the approach to taking dividends as opposed to redemptions, particularly from closely-held corporations. The cited explanation lists exceptions for what is not a dividend and then states the tax rates applicable for each.