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News Summary: Dividend investors may see tax hike

Updated at: 11/15/2012 5:05 PM
By The Associated Press

TAX RISE: Investors pay a 15 percent tax on most income from dividend-paying stocks. That rate will rise in January unless Congress and President Obama reach a compromise on taxes and spending.

EARN MORE, PAY MORE: Dividends would be taxed as ordinary income in 2013. So rates will go up depending on which income bracket a taxpayer is in. The highest earners could pay 43.4 percent.

BEAT THE DEADLINE: A few companies plan to make special payouts to investors next month. That way investors will pay 15 percent in taxes, rather than next year’s potentially higher rates.

(Copyright 2012 by The Associated Press. All Rights Reserved.)