Which of the following statements is true:
A) Income character determines the tax year in which the income is taxed.
B) Income character depends on the taxpayer's filing status.
C) Qualified dividend income is taxed at a lower rate than the same amount of ordinary income.
D) A taxpayer selling a capital asset at a gain recognizes ordinary income.

Question

Quizplus · Accepted Answer

Qualified dividend income is taxed at a lower rate than the same amount of ordinary income. The tax rate for qualified dividends is typically 0%, 15%, or 20%, depending on the taxpayer's income tax bracket.

Which of the Following Statements Is True