Tax Investment Income Guide for Dividend and Interest (2026)
Report investment income tax: dividends, interest, capital gains, qualified vs ordinary, and investment income taxation.
Summary
Investment income has specific tax treatment. This guide explains dividends, interest, and capital gains reporting.
Key Steps
- 1Qualified dividends: taxed at capital gains rates, 0%, 15%, 20%.
- 2Ordinary dividends: taxed at regular income tax rates.
- 3Interest income: taxable as ordinary income, reported on 1099-INT.
- 4Capital gains: short-term ordinary rates, long-term capital rates.
- 5Schedule B required: report interest/dividends exceeding $1,500.