On Form 1099-DIV, qualified dividends are found in Box 1b. Dividends are separated into two classes by the IRS, ordinary and qualified. 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. Internal Revenue Service. Publication 550.
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. The record date is the date at which a shareholder must be on the company's books to receive the dividend.
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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