Qualified dividends are dividends that are taxed at the lower 5 or 15 percent
tax rates instead of at the ordinary income tax rate. 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.
GainsKeeper's DivTracker product is an easy to use tool that removes the
complicated qualified dividend calculations. Taxpayers can use DivTracker to
produce a Qualified Dividend Report displaying their ordinary dividend and
qualified dividend income - figures required for tax filing in line 9a and 9b
of IRS form 1040.