Question

Taxpayers whose only unearned income consists of qualified dividends and capital gain distributions reported to them on form 1099-div generally compute the amount on tax on their income using what form?

Answer 1

Long-term capital gains are taxed on qualified dividends. This indicates that you will get these dividends tax-free if your highest income tax bracket is 15% or lower.

What are qualified dividends and capital gain?

The term "qualified dividends" refers to dividends from shares of domestic firms and some qualifying foreign corporations that you have held for at least the aforementioned minimum holding period, or holding period, in general.

The shares must also be unhedged, meaning that no puts, calls, or short sales were connected to them during the holding period.

On Form 1099-DIV, qualified dividends are disclosed in line 1b or column 1b. It's possible that not all of the dividends listed on those lines complied with the holding period requirement. These non-qualified dividends and other regular dividends could be subject to taxation at your ordinary income tax rate, which is up to 37%.

Learn more on qualified dividend here: brainly.com/question/27456116

#SPJ1