Please summarize your understanding of taxation of Qualified Dividends.

Use the following steps:

1. Briefly describe the requirement for dividend income to be eligible for "Qualified Dividends" designation

2. What form is used to report Qualified Dividends to a taxpayer?

3. How do the qualified dividends taxed? At what rate?

4. What form and/or worksheet is used?

5. What is the major difference b/w taxation of ordinary dividends vs. qualified dividends?