Dividends from US and certain foreign corporations on stock held more than 60 days around the ex-dividend date. They are taxed at long-term capital gains rates (0, 15, or 20 percent) instead of ordinary rates.
The holding period is what trips people up: selling shortly after the dividend converts it to ordinary income. Brokers report the split on Form 1099-DIV, but the split assumes you met the holding period.
No. Staking rewards are ordinary income. Only dividends from qualifying corporate stock get the reduced rate.
Source: IRC 1(h)(11); Form 1099-DIV instructions
Last reviewed September 17, 2026. Tax rules change; confirm current law before acting.
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