Problem $2-23$

Dividend Income $($LO $2\mathrm{.}10)$

a$.$ Respond to the following: In $2024,$ how are qualified dividends taxed?

Qualified dividends are taxed at cither $0\%,15\%,$ or $20\%$ depending on income and filing status.

b$.$ Complete the following paragraph that outlines the tax rates and application for qualifying dividends.

A single taxpayer with taxable income of $ $q,x$ or below would have capital gains taxed at a rate of $0\%.$

If that same single taxpayer's taxable income was over $ $x$ and up to $ $x,$ the capital gains rate would be $.$

And if that taxpayer made over $ $q,x$ of taxable income, the capital gains rate would be $.$

In addition, certain high$-$income taxpayers may also need to pay an additional $q,$ Medicare tax on their net inved ment income $=$