Tax-Deferred Accounts
Holding dividend-paying stocks in tax-deferred accounts such as 오세훈 관련주 IRAs or 401(k)s can defer taxes on dividend income until withdrawals are made, potentially reducing the overall tax burden.
- Example: Dividends received in a traditional IRA are not taxed until the investor withdraws funds during retirement, possibly at a lower tax rate.
Foreign Dividends
Investors holding foreign dividend-paying stocks may face withholding taxes from the country where the company is based. Understanding the tax treaties and the potential for foreign tax credits is essential for minimizing double taxation.
- Example: An investor receiving dividends from a European company might face a 15% withholding tax but can claim a foreign tax credit to offset U.S. tax liability.