Series 7 Exam Question 183: Answer and Explanation

Question: 183

Qualified cash dividends are currently taxed at which rates?

I. 0 percent

II. 10 percent

III. 15 percent

IV. 20 percent

• A. I and II
• B. I, III, and IV
• C. III and IV
• D. II, III, and IV

Correct Answer: B

Explanation:

B. Qualified cash dividends received from stocks are taxed at a maximum rate of 0 percent, 15 percent, or 20 percent depending on the investor's adjusted gross income (AGI). Non-qualified dividends are taxed at the investor's tax bracket. Please note that these rates are subject to change.