Total Ordinary Dividends = All dividends received, including both qualified and non-qualified dividends. Entered on line 9a of the IRS form 1040.

Qualified Dividends = All dividends that are eligible for the lower tax rate (5% or 15%). Entered on line 9b of the IRS form 1040. The IRS states that in order for dividend income to qualify for the reduced capital gains tax rates two guidelines must be met - both the company paying the dividend and the holding period relative to the ex-dividend date must qualify.

DivTracker determines the IRS holding period qualification - whether or not the dividend paying stock was owned for more than 60 days of the 121-day period that begins 60 days before the ex-dividend date. Please note, there are a number of dividend paying stocks that will not qualify for the reduced tax rates due to other IRS restrictions. DivTracker will not make any qualification or exclusion based on these IRS restrictions; it is the tax filer's responsibility to make this type of non-holding period qualification determination.

ex-dividend date = The first date following the declaration of the dividend on which the purchaser of a stock is not entitled to receive the next dividend payment. When counting the holding period (number of days you held the stock), investors must include the day you sold the stock, but not the day you purchased the stock.