I'd like to thank Intuit for it's clear and concise reply. The IRS form 1040 line 3b is titled "Ordinary Dividends" which gives the false impression that it excludes the qualified dividends on line 3a. As you noted, line 3b is actually the total taxable dividends which includes the qualified dividends on line 3a. If the IRS would simply re-title line 3b to "Total Taxable Dividends" then it would eliminate a lot of unnecessary confusion.
