how earnings in the stock market get taxed?

[bostonianinmo]

There are 3 tax situations with regards to market investments. Ordinary dividends are taxed as ordinary income at your marginal rate. Qualified difidends are taxed a long-term capital gains, usually at 15%. Captial gains -- the profit you (hopefully!) make when you sell stocks -- are taxed as ordinary income if the shares are held for one year or less or as long-term capital gains if held for over one year.