Question $32$

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A taxpayer filing as Single has $$25,600$ of taxable income. Included in gross income is with Box $1$ interest income of $$5,000,$ tax$-$exempt interest of $$3,000,$ and interest on bonds of $$1,200.$

Additionally, the taxpayer has a $1099-$DIV with dividend income of $$3,000,$ of which qualified dividends, and capital gains distributions of $$500.$

Is the following statement accurate about this scenario?

Is this a correct option?

The capital gain distribution will be taxed at their ordinary tax rate.

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