From Dow Jones & Company:

The tax code treats investment income differently from wages, with separate tax brackets and rates for long-term capital gains and qualified dividends. Taxable account holders, not those with tax-favored retirement accounts like IRAs or 401(k)s, are often eligible for lower tax rates on investment income and other benefits. This information is important for investors looking to optimize their tax strategy and maximize their investment income. (Word count: 64)



Read more: What the 2024 Capital-Gains Tax Brackets Mean for Your Investments