what is qualified dividends?
Qualified dividends are the ordinary dividends subject to the same 0%, 15%, or 20% maximum tax rate that applies to net capital gain. They should be shown in box 1b of the Form 1099-DIV you receive. The maximum rate of tax on qualified dividends is the following. 1  0% on any amount that otherwise would be taxed at a 10% or 15% rate. 2  15% on any amount that otherwise would be taxed at rates greater than 15% but less than 39.6%. 3  20% on any amount that otherwise would be taxed at a 39.6% rate.