Gina Morales had taxable income of $35,950 in 2020. She will file a return using the single filing status. Her income consisted

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2 years ago

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Gina Morales had taxable income of $35,950 in 2020. She will file a return using the single filing status. Her income consisted

of ordinary and qualified dividend income of $2,000, reported to her on Form 1099-DIV. The rest of her income was from wages. What tax rate will apply to Gina's qualified dividends

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1 answer:

valina [46] · Answer 1 · 2023-02-20T08:03:49+03:00

The applicable tax rate to Gina's qualified dividends is 0%.

Gina's qualified dividends of $2,000 are below the threshold for long-term capital rates of 15% and 20%. Based on Gina's single filing status with a taxable income of $35,950, which falls under the 12% taxable income bracket, she will not be paying any tax on her qualified dividends. But she must still disclose the qualified dividend income on her tax form.

Thus, the tax rate that applies to Gina's qualified dividends is 0%.

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