Box 1a includes amounts entered in boxes 1b and 2e, and it also includes the amount of the recipient's share of investment expenses that you report in box 6.
Box 1b (qualified dividends) - Enter the portion of the dividends in box 1a that qualifies for the reduced capital gains rates. Include dividends for which it is impractical to determine if the section 1(h)(11)(B)(iii) holding period requirement has been met.
A dividend is considered to be qualified if you have held a stock for more than 60 days in the 121-day period that began 60 days before the ex-dividend date. It is an ordinary dividend if you hold it for less than that amount of time. The ex-dividend date is one market day before the dividend's record date.
Certain dividend payments aren't qualified dividends, even if they're reported as such. These are listed in IRS Publication 550 under the "Dividends that are not qualified dividends" section, and they typically include capital gains distributions and dividends you receive from a farmers' cooperative. They are not qualified dividends, even if they are shown in box 1b of Form 1099-DIV.
Dividend Tax Guide
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