Ordinary Income vs. Capital GainsWhy Is This Important?Figuring Your Gains and LossesDividend DistributionsHow Are Dividend Distributions Taxed?The Bottom LineIn general, dividend income is
taxed as ordinary income.11If your
mutual fund buys and sells dividend stocks often, more than likely any dividends you receive are
taxed as ordinary income. For example, a-sume you receive $1,000 in dividend payments from your actively managed fund. If you are in the 24% income
tax bracket, you pay $240 at tax time. ...See more on investopedia.com
Occupation: Lead Writer
Published: Sep 17, 2015
Author: Claire Boyte-WhiteFranklin Federal Tax Free Income Fund - U.S. News & World Reporthttps://money.usnews.com/funds/mutual-funds/muni...WebThe Franklin
Federal Tax-Free Income
Fund offers an inexpensive way for investors to …