William is single and had salary income from his position as Chief Financial Officer of Zippy Bank of $450,000 putting him in the 37% marginal tax bracket.He also had $35,000 in income from the dividends on the stock of his previous employer.What tax rate will apply to William's dividend income?
A)15%
B)20%
C)35%
D)39.6%

Question

Quizplus · Accepted Answer

Qualified dividends are taxed at a lower capital gains tax rate. For individuals in the 37% tax bracket, the tax rate on qualified dividends is 20%.

William Is Single and Had Salary Income from His Position