The double taxation of dividends happens when a company's earnings and shareholder dividends are both taxed by the U.S. government. Corporations first pay taxes on their profits, which, if distributed ...
Shareholders are then required to pay tax again on the dividend income, effectively resulting in double taxation of the same ...
Elizabeth Blessing is a financial writer and editor specializing in growth investing, high-yield stocks, small caps, and gold investing. The Dividends Received Deduction (DRD) lets U.S. corporations ...