Yes non-exempt dividends are included in income unless they are considered qualified dividends. Your 1099 DIV will distinguish between qualified dividends and non qualified dividends.

Yes, fees and expenses are deductible. You can include the fees paid by cash or check as investment expenses.  You cannot deduct fees paid through your IRA account.

On the other hand, management fees paid by cash or check and are not deducted from the IRA can be deducted as investment expenses.

Investment expenses are considered part of Miscellaneous Itemized Deductions.  The total of all Miscellaneous Itemized Deductions must be more than 2% of adjusted gross income to be included in the calculation of itemized deductions.