Fillipe is in the forty percent marginal tax bracket and has a variety of income sources.Which of the following will he owe the least tax for?
A)$1000 interest income
B)$1000 dividend income
C)$1000 award from his company
D)$2000 capital gain

Question

Quizplus · Accepted Answer

Dividend income is typically taxed at a lower rate than other forms of income, including interest income, awards, and capital gains, especially if they are qualified dividends. Therefore, out of the given options, B would result in the least tax owed for Fillipe.

Fillipe Is in the Forty Percent Marginal Tax Bracket and Has