For individual federal income tax, what is the tax treatment of ordinary dividends

For individual federal income tax, what is the tax treatment of ordinary dividends

 For individual federal income tax, what is the tax treatment of ordinary dividends?

A. Always tax-exempt

B. Taxed at ordinary income tax rates

C. Automatically capital gain rates

D. Added to alternative minimum tax only

Answer: B

Explanation: Ordinary dividends are taxed at ordinary individual income tax rates.