Schwab Brokerage not reporting Interest correctly

Ken W.

I'm using QM2017 (4.8.3). Starting in mid-April 2018 Schwab stopped moving the cash in the brokerage accounts into Sweep Shares (SWSXX), which paid dividends, into Schwab Bank which paid Interest. Until that time QM2017 reported the Dividends as Dividend Income, which is correct. After the transition to the Schwab Bank the Interest payments starting appearing as Payment/Deposit. The proper type should be Interest Income. After spending considerable time with Quicken Tech Support we came to the conclusion that the problem originated at Schwab's end. A lengthy call to Schwab Tech Support resulted in Schwab's saying that the problem was at Quicken's end. Today I called Quicken Tech Support again and they claimed that, since I was using Direct Connect, the problem had to be at Schwab's end and the only remedy was for me to manually change the Type to Interest Income. I don't know if later versions of Quicken Mac (2018, 2019) address this problem. Regardless, it appears that I am stuck in manually correcting the Schwab Interest downloads. One additional issue, the Interest Income is configured as Taxable. If the interest is paid in an IRA account, one must add an non-taxable payment Type. While tis can be done, it cannot  be added into the Investment Category which is part of Quicken's built-in Categories.

P.S. My Schwab Bank Account does list the Interest payment as Interest Paid and always has.

Tom Young

"After the transition to the Schwab Bank the Interest payments starting appearing as Payment/Deposit. The proper type should be Interest Income."

That's exactly the way it's being reported in "Windows" Quicken too so I would say it's the way Schwab has things set up. 

I don't fight it, I just change it to an _IntInc action.  It's a once a month thing in my various Schwab Accounts and usually amount to pennies.  Maybe at some point Schwab will change on their end.

"One additional issue, the Interest Income is configured as Taxable. If the interest is paid in an IRA account, one must add an non-taxable payment Type."

Actually, you don't need to do this.  Quicken understands that activity inside an IRA - dividends, interest, capital gains, etc. - isn't taxable and by default does not include that income in any "tax" report. 

Interest, Dividends and Capital Gains inside an IRA are exactly the same as those activities inside a taxable account and really don't need to be distinguished when it comes to investment analysis, they only need to be distinguished, really, in an income tax return and Quicken handles that just fine.

Tom Young

"After the transition to the Schwab Bank the Interest payments starting appearing as Payment/Deposit. The proper type should be Interest Income."

That's exactly the way it's being reported in "Windows" Quicken too so I would say it's the way Schwab has things set up. 

I don't fight it, I just change it to an _IntInc action.  It's a once a month thing in my various Schwab Accounts and usually amount to pennies.  Maybe at some point Schwab will change on their end.

"One additional issue, the Interest Income is configured as Taxable. If the interest is paid in an IRA account, one must add an non-taxable payment Type."

Actually, you don't need to do this.  Quicken understands that activity inside an IRA - dividends, interest, capital gains, etc. - isn't taxable and by default does not include that income in any "tax" report. 

Interest, Dividends and Capital Gains inside an IRA are exactly the same as those activities inside a taxable account and really don't need to be distinguished when it comes to investment analysis, they only need to be distinguished, really, in an income tax return and Quicken handles that just fine.

Ken W.

Tom:

Thank you VERY much reminding me that Quicken automatically recognizes IRA accounts. I'm curious, does Quicken state that important fact anywhere? I've been creating non-taxable Types or quite some time. (:o(