The following do not qualify as qualified dividends or simply say are dividends that are not qualified dividends, not even if they are shown in box 1b of Form 1099-DIV. a) Capital gain distributions. b) Dividends from tax-exempt corporations. c) Dividends on shares held through an option or a future contract. d) Dividends paid on stock borrowed in a short sale. e) Dividends on employee securities under the employee stock option plan (ESOP). f) Dividends paid by credit unions or other mutual savings institutions. g) Dividends paid on deposits with mutual savings banks, cooperative banks, credit unions, U.S. building and loan associations, or similar institutions. This detailed exhaustive list is available in the Publication 550 of the IRS website - Dividends that are not Qualified Dividends.