Qualified Dividends   Definition Shows your Qualified Dividends. This amount is the portion of your Total Ordinary Dividends in Column 1a that may be eligible for the 15% or zero capital gains rate. See Form 1040 and 1040A Instructions for information on how to determine the eligible amount. Include the eligible amount as part of your total on Form 1040 or 1040A, in the section labeled Income, on the line labeled Qualified dividends. In addition, complete the Qualified Dividends and Capital Gain Tax Worksheet located in the 1040 or 1040A instructions. See Publication 550, Investment Income and Expenses (Including Capital Gains and Losses) for the definition of qualified dividends.