The Category of _DivInctaxfree was not working now gone ?

BigPete3

Recently I noticed that the category of _DivIncTaxFree has not worked properly since end of 1Q 2019. I reported it to Quicken Support and they agreed. I looked today to see if it was fixed but now that category has completely disappeared. It is no longer an option ? What is going on ? It's tax time and I need accurate reports. Everything is now reporting as _DivInc instead. This throws everything out of wack for taxes.

Rocket J Squirrel

If you run an Investment Income report, does the category not appear? It does when I run that report.

BigPete3

No the category is still there. My mistake I guess. But the problem is that for a Tax Free Savings Account (TFSA) Quicken is automatically categorizing the dividends as _Div when it should be _DivIncTaxFree. There is no way to override that category.

Bob_L

Is the security in your TFSA checked as being tax free when you edit that security?

BigPete3

I can’t do it by stock it needs to be by account. I have the same stock in tax accounts too. Used to work fine !

Bob_L

AFAIK that category has always been handled at the security level.  If the whole account is tax free it should be set up as tax deferred etc.

q_lurker

"Tax Free Savings Accounts" are a US account structure I am not familiar with.  Quicken's expectation is that non-taxable ACCOUNTS are 'retirement' accounts (but also including 529 accounts, I believe) and those accounts are by default excluded from applicable tax reports.  Their income does not flow to tax-exempt interest on tax returns.  That way an individual security can be held in a taxable account (and have dividends reported a taxable) and in a tax-deferred account (and not have dividends reported as taxable). 

It would appear, if you need to pass on 'tax exempt dividends' from that account to your tax return, you will need to do so manually.

Quicken has always worked that way.  Nothing has changed.

q_lurker

BigPete3 said:

... There is no way to override that category.

You can enter a MiscInc transaction rather than a Div transaction and associate that to the category _DivIncTaxFree.

BigPete3

I mostly do Reinvestdiv. Worked fine for years

BigPete3

TFSA is a Canadian account. When you say nothing has changed you are mistaken. Whatever the change it happened in April of 2019. I have a ticket open with Quicken today. Thanks