Alicia, age 16, received $6,000 in qualified dividends. What is the tax on those dividends?

To determine the tax on Alicia's qualified dividends of $6,000, it's important to consider her tax situation as a minor and the specific tax treatment of qualified dividends. For individuals under the age of 19 (or under 24 if a full-time student), the tax liability on qualified dividends can be significantly lower due to the standard deduction threshold and other tax rules that apply to dependents.

In Alicia's case, the standard deduction for 2023 far exceeds her qualified dividends. For dependents, the standard deduction is generally the greater of $1,250 or the individual's earned income plus $400 (up to a limit). Since Alicia's income is entirely from dividends, her taxable income after applying the standard deduction would be essentially zero because her standard deduction surpasses her income.

Since her taxable income falls below the threshold for the lowest tax rate, she would not owe any tax on her qualified dividends. Therefore, the correct conclusion is that the tax on the $6,000 in qualified dividends is $0. This situation illustrates how the standard deduction provisions and the nature of qualified dividends can result in no tax liability for eligible individuals, particularly minors.