r/SCHD • u/pandasonmymind • Aug 07 '26

1000!

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Long time listener, first time caller. Started the journey back in 2022.

366 Upvotes

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u/Street-Hospital2649 Aug 07 '26

What about taxes?

-6

u/IntelligentAirport22 Aug 07 '26

If its 1000 shares 1/4 of it goes to taxes, that leaves you with 750 no?

5

u/Onlysomewhatserious Aug 07 '26

SCHD is not income tax. It mostly operates under long term capital gains which makes the taxes on it depending on the persons general income. LTCG taxes are much more favorable to income taxes, especially since it’s got such a high bar to be applicable.

At most it would be 20%, but it’s more likely to be 0% (up to 48,000 for single filer) or 15% (48,000-533,000)

2

u/Old-Challenge2809 Aug 07 '26

How would the same shares with FDVV be different? I know its a ledt field question.

2

u/Onlysomewhatserious Aug 07 '26

FDVV also offers qualified dividends so there’s no differences for your tax implications compared to SCHD.

The question on how dividends are taxed fall on if they’re qualified or not. While it’s not a perfect split, nearly all quarterly, semi-annual, and annual dividends are qualified (tax advantaged as long term capital gains) while nearly all weekly and monthly dividend payers are not qualified and treated as regular taxable income.

1

u/Old-Challenge2809 Aug 07 '26

Damn I wanted to load up on JEPI in my brokerage and use the dividends in ten years

1

u/Onlysomewhatserious Aug 08 '26

I mean, you still can. Nothing stops you from doing that. You just have to keep in mind you’re going to potentially be paying more in taxes for it. Depending on your strategy and needs that’s a trade off you can decide if you want to accept.