How are dividends taxed in the U.S.?

Dividends are considered taxable income, and the rate depends on their classification: 

1. Ordinary dividends: taxed as regular income, at the same rates as wages. 
2. Qualified dividends: taxed at lower rates — typically 0%, 15%, or 20% — depending on your income level and how long you've held the stock. 

For US-Persons, dividends are reported using Form 1099-DIV.