For individuals, dividends are taxed at a lower rate than other income if they are considered:
A) qualified dividends.
B) unqualified dividends.
C) common stock dividends.
D) preferred stock dividends.

Question

Quizplus · Accepted Answer

Qualified dividends are taxed at a lower rate than ordinary income and non-qualified dividends because they meet specific criteria set by the IRS, such as being paid by a U.S. corporation or a qualified foreign corporation and holding the underlying stock for a minimum period.

For Individuals, Dividends Are Taxed at a Lower Rate Than