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

Question

Quizplus · Accepted Answer

If 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 tax rates for taxpayers in the 10% and 15% brackets. So, if someone's ordinary income tax rate is less than 25%, their tax rate on qualified dividends would be 0%.

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