What is the tax rate on qualified dividends?

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Multiple Choice

What is the tax rate on qualified dividends?

Qualified dividends are taxed at the same favorable rates as long-term capital gains, not at ordinary income rates. The exact rate isn’t fixed for everyone—it depends on your taxable income and filing status. Because of that, the rate on qualified dividends can be 10%, 15%, or 20% depending on how much you earn. Only dividends that meet IRS criteria qualify for these lower rates; ordinary dividends are taxed at your regular income tax rate.

Qualified dividends are taxed at the same favorable rates as long-term capital gains, not at ordinary income rates. The exact rate isn’t fixed for everyone—it depends on your taxable income and filing status. Because of that, the rate on qualified dividends can be 10%, 15%, or 20% depending on how much you earn. Only dividends that meet IRS criteria qualify for these lower rates; ordinary dividends are taxed at your regular income tax rate.

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