When an individual's marginal ordinary income tax rate is 25% or more and less than 39.60%,the tax rate on qualified dividends is:

Question

Quizplus · Accepted Answer

When an individual's marginal ordinary income tax rate is 25% or more and less than 39.6%, the tax rate on qualified dividends is 15%. This is higher than the 0% tax rate on qualified dividends for those in lower tax brackets, but lower than the 20% tax rate for those in the highest tax bracket. Therefore, the best choice is B) 15%.

When an Individual's Marginal Ordinary Income Tax Rate Is 25