Tim receives $500 of qualified dividends from Exxon in 2013.He is in the 10 percent ordinary tax bracket.Tim's tax on the dividends will be:

Name: Tim receives $500 of qualified dividends from Exxon in 2013.He is in the 10 percent ordinary tax bracket.Tim's tax on the dividends will be:
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Tim is in the 10% tax bracket and qualified dividends are taxed at a maximum rate of 0% for taxpayers in the 10% or 15% tax brackets. Therefore, Tim's tax on the dividends is 0.

Tim Receives $500 of Qualified Dividends from Exxon in 2013