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Excuse my interference, but what is "Qualified" Dividends? Do they apply on all taxable accounts a person owns: Mutual funds, DRIPs, and Stock Trading in a brokerage account?

Welcome to the world of 2003 taxes! Qualified dividends are those that qualify to be taxed at long-term capital gains rates, not ordinary income rates.

Qualified dividends include dividends on domestic corporations and certain foreign corporations if the underlying shares are held for 60 days in the 120 day window starting 60 days before the ex-dividend date. Qualified dividends may, but generally do not, include dividends from REITS. Mutual funds will generate both qualifying and non-qualifying dividends. Money market and bond funds will not qualify. Certain other less common investments will also not qualify.

BTW, dividends on foreign stocks which trade OTC do not qualify. (Note, this does not include Nasdaq. Nasdaq-traded foreign stocks may generate qualifying dividends).

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