To be correct, tax topic 404 probably should read:
"Whereas ordinary dividends, that are not qualified, are taxable as ordinary income. Qualified dividends that meet certain requirements are taxed at lower capital gain rates..."
However, tax topics are more like a FAQ and are not official IRS publications, and tax topics are often incomplete. Tax topics should not be relied on the same way as form instructions or publications.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
