When you have ordinary dividends and qualified dividends (line 3a and 3b on 1040) Are those amounts two separate incomes that should be counted together?

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@spm_no wrote:

I'd like to thank Intuit for it's clear and concise reply.  The IRS form 1040 line 3b is titled "Ordinary Dividends" which gives the false impression that it excludes the qualified dividends on line 3a.  As you noted, line 3b is actually the total taxable dividends which includes the qualified dividends on line 3a.  If the IRS would simply re-title line 3b to "Total Taxable Dividends" then it would eliminate a lot of unnecessary confusion.

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You seem to think that qualified dividends are not also ordinary dividends. 

All dividends on the 1099-DIV lines 1a are "ordinary dividends".  A *portion* of those ordinary dividends might also be qualified dividends that qualify for special tax treatment.

The 1040 instructions say:

Line 3b
Ordinary Dividends
Each payer should send you a Form
1099-DIV. Enter your total ordinary dividends
on line 3b. This amount should
be shown in box 1a of Form(s)
1099-DIV.

Line 3a
Qualified Dividends
Enter your total qualified dividends on
line 3a. Qualified dividends also are included
in the ordinary dividend total required
to be shown on line 3b. Qualified

dividends are eligible for a lower tax
rate than other ordinary income. Generally,
these dividends are shown in
box 1b of Form(s) 1099-DIV. See Pub.
550 for the definition of qualified dividends
if you received dividends not reported
on Form 1099-DIV.

The IRS 1099-DIV instructions say:

Box 1b. Qualified Dividends
Enter the portion of the dividends in box 1a that qualify for the
reduced capital gains rates.