For most people, long-term capital gains are taxed at 15%. Same goes for qualified dividends. The wealthiest investors are taxed at 20%.
But investors in the two lowest income tax brackets pay no tax at all on capital gains and dividends. That can be a nice break for retirees, who are not taxed on some or all of their Social Security benefits. The unemployed, who may have had to tap their investments to make ends meet, can also benefit.
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