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Tax Treatment of Dividends Under the 2003 Tax Cut: Fact Sheet (CRS Report for Congress)

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Release Date June 11, 2003
Report Number RS21541
Report Type Report
Authors Jane G. Gravelle, Government and Finance Division
Source Agency Congressional Research Service
Summary:

While ordinary and preferred stock dividends, along with some foreign dividends, are eligible for dividend relief in the form of lower tax rates, certain dividends are not eligible. Dividends retain their original character if received indirectly through mutual funds and real estate investment trusts are eligible. Dividends which are already eligible for tax preferences and held in pensions or IRAs are not eligible.