Deductions & credits

Enter the amount shown in box 1(b). Qualified dividends are a part of dividends but are shown separately so that you get the benefits of a lower tax rate.

 

Qualified dividends are ordinary dividends that meet specific criteria to be taxed at the lower long-term capital gains tax rate rather than at a higher tax rate for an individual's ordinary income. That is why it s it is shown in the box I(b).