Qualified Dividend
investmentAlso known as: qualified dividends
Updated · Written and reviewed by Konstantin Iakovlev
Detailed explanation
To qualify, you must hold the dividend-paying stock for at least 60 days during the 121-day period beginning 60 days before the ex-dividend date. Most mutual fund and ETF dividends from typical US stocks are qualified. Non-qualified dividends (REITs, MLPs, money market interest, certain foreign stocks) are taxed at ordinary income rates. Form 1099-DIV reports both types separately (Box 1a = ordinary dividends; Box 1b = qualified dividends, a SUBSET of 1a). Qualified dividends are reported on Schedule B + flow to the qualified dividend worksheet on Schedule D.
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