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

Question

Quizplus · Accepted Answer

When an individual's marginal ordinary income tax rate is less than 25%, the tax rate on qualified dividends is 0%. This is because qualified dividends are taxed at a lower rate than ordinary income for individuals in the 10% or 15% tax brackets, and at 0% for those in the 0% to 15% tax brackets.

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