Multiple Select Question

Select all that apply

Which of the following choices describes the tax treatment for qualified dividends?

Multiple select question.

The income is always taxed at the taxpayer's ordinary income tax rate.

The income may be taxed at a rate as high as $20\%,$ depending on the taxpayer's taxable income.

The income may be taxed as low as $0\%,$ depending on the taxpayer's ordinary income rate.

The income is taxed at the lower of the taxpayer's marginal rate or at a maximum $15\%.$

The actual interest payments received are included in gross income.

If bonds were issued at a discount, special original issue discount rules apply.

If bonds are purchased at a premium in the secondary market, the premium can be amortized or added to the basis of the bonds.

If bonds are purchased at a discount in the secondary market, the discount is amortized over the remaining life of the bond.

If bonds were issued at a premium, taxpayers must amortize the premium over the life of the bond resulting in an increase in interest income.