Qualified Dividend Income Mutual Funds

Qualified dividends and return of capital faq.

Qualified dividend income mutual funds. Capital gains qualified dividends and return of capital faq. You can use your returns from the dividend mutual funds in two ways. Dividend mutual funds only gather companies that pay out dividends. Insurance series mutual funds.

Mutual fund dividends may qualify for lower income tax rates to the extent that the fund has received qualified dividend income from domestic corporations and certain foreign corporations. About two thirds of its distributions count as qualified dividends meaning investors pay top federal income tax rates of just 15 or 20. The following thrivent mutual funds had ordinary income distributions that qualify for these lower tax rates as long as the shareholder met the holding. The tables below show the percentages of 2019 dividend and net short term capital gains distributions by vanguard fund and share class that are eligible for reduced tax rates as qualified dividend income qdi under the jobs and growth tax relief reconciliation act of 2003.

This rate does not include the 3 8 surtax applicable to net investment income for higher income taxpayers.