Did you know that regular dividends are classified as either qualified or ordinary? Each with different tax implications that impact your net return. In this video, you'll learn a simple way to understand this concept through an easy and brief explanation. The IRS has three requirements for capital gains tax rates: they must be paid by a U.S. company or a qualifying foreign country. They must not be listed by the IRS as those that do not qualify. And finally, they must meet the required holding period. Most regular dividends from U.S corporations are categorized as qualified.