@fanfare : Thanks for the reply.
I think the wording in the 1040 instructions is clear. IRS instructions may be correct and may be definitive, but they are hard to understand and hard to find the answer to a particular question. I google for information and read sources from TT, investopia and such. I found several sources that indicate qualified is not a subset of ordinary dividend or at least imply that. I agree with other posts here that this issue seems to be misunderstood by more than just a few lay people.
I did submit a request to fix the Topic No. 404 Dividends publication. Another post says it's OK for this be wrong since it's not an instructions document, but that does not seem like a reasonable excuse to me.
I can't fix or even suggest to fix all the wrong or misleading sources out there. But, I'm glad that I understand now and I hope others come here for clarification. This TT community is very good!
Also, I'm coming to this issue while filling out 1041; not 1040. I scanned the 1041 instructions and don't see indication that qualified is a subset of ordinary. ... so the answer is in an IRS instructions document, but how is one to know where to look for it? As I often say: it's good to document information, but if you can't find the information when you need it then it's not valuable.
