How to keep track of nontaxable (tax-free) income in Quicken

Tiger 026

I have nontaxable disability income and Roth IRA distribution income. That income goes into my bank Savings account, as does my taxable income. I then transfer money from Savings to my Checking account and to my investments. However, at end of year tax reports Quicken shows all my income as taxable. How do I get Quicken not show nontaxable income as taxable? Put another way, how can I distinguish between taxable and nontaxable income in Quicken?

Rocket J Squirrel

A category not associated with a tax line item should not show up at all in tax reports.

Transfers out from an IRA should be associated with the tax line item "1099-R:Total IRA taxable distrib." for them to show up properly in the Tax Planner.

q_lurker

What Category are you assigning to the disability income as it come in?  You should create (if it does not exist) a category for that income that either has no tax line or has a tax line associated with such non-taxable income.  (I do not know of such a tax-line among Quicken's available options.)

For the IRA distribution, your Roth IRA account settings, Tax Schedule settings should likely be blank for the Transfers Out selection.  (Others will correct me if I am wrong on that.)  That is for a ROTH IRA account.  For a Traditional IRA account, the transfers out should be classed as related to the  "1099-R:Total IRA Gross Distribution" tax line.   

Rocket J Squirrel

A category not associated with a tax line item should not show up at all in tax reports.

Transfers out from an IRA should be associated with the tax line item "1099-R:Total IRA taxable distrib." for them to show up properly in the Tax Planner.