Tax Planner includes scheduled tax exempt interest and dividends as taxable income

leishirsute

How do I get the Tax Planner to exclude scheduled tax exempt interest and dividends as taxable income?

Chris_QPW

In general there should be two ways.

1. If the interest/dividend is recorded in an non taxable account.
2. Use a category for the transaction(s) that isn't associated with a tax line.
   

leishirsute

The problem is that when a dividend is downloaded or dividend transaction is entered there is no option for a tax free dividend in a taxable account. 

Entering a dividend, _div is assigned as the category with no option to change the category when entering the transaction.  Also, the asset is designated as a tax-free asset, but Quicken appears to ignore that when assigning the category or in the tax planner.

Chris_QPW

Well it was my understanding that if the security was marked Tax free it was suppose to carry to the Tax Planner, but I haven't really tested it.

Another way to handle this though is to put the amount into Miscellaneous, once you do that the category entry will become valid and you can use a category that isn't associated with a tax line.

NotACPA

Why did you mask out the security name and symbol?  Knowing what company this is about could help greatly in figuring this out.

leishirsute

NotACPA said:

Why did you mask out the security name and symbol?  Knowing what company this is about could help greatly in figuring this out.

I have several securities that generate tax-exempt income.
For example, FTABX, or PZA.

leishirsute

Chris_QPW said:

Well it was my understanding that if the security was marked Tax free it was suppose to carry to the Tax Planner, but I haven't really tested it.

Another way to handle this though is to put the amount into Miscellaneous, once you do that the category entry will become valid and you can use a category that isn't associated with a tax line.

That's a good idea. I will try it out.  If I select the category of _DivIncTaxFree for miscellaneous, maybe that would work in the tax summary report as well as the tax planner.

Thanks.

NotACPA

Since the funds that you referenced are individually marked as "Tax Free", are they actually appearing as taxable on a Q Tax Report?

Where are you seeing otherwise?

leishirsute

NotACPA said:

Since the funds that you referenced are individually marked as "Tax Free", are they actually appearing as taxable on a Q Tax Report?

Where are you seeing otherwise?

They show on the Quicken Tax Summary report as tax free interest and tax free dividends.  However, the Tax Planner does not make that distinction.  If I had to guess, it is because I have selected the Planner to use scheduled transactions and the Planner only looks at scheduled dividends and interest and not if they are tax free.

markus1957

Tax Planner will NOT include dividends or interest transactions downloaded (or manually entered) from securities that are check marked as Tax free. 

Scheduled reminders on the other hand do not honor that check mark if you use the dividend assignment feature for income reminders.  Those need to be entered as regular income reminders (not dividends) that are assigned a tax free category.

leishirsute

markus1957 said:

Tax Planner will NOT include dividends or interest transactions downloaded (or manually entered) from securities that are check marked as Tax free. 

Scheduled reminders on the other hand do not honor that check mark if you use the dividend assignment feature for income reminders.  Those need to be entered as regular income reminders (not dividends) that are assigned a tax free category.

Agreed.
Posted tax free transactions are not included as income. Scheduled tax free transactions are included.  

 It sounds like the tax planner has room for improvement to verify if a scheduled transaction is for a tax free asset. When entering a scheduled transaction as a dividend , the asset can be selected from a drop down list. When entering a dividend as regular income, is this selection still possible?

It seems your suggestion would work since the scheduled transactions are replaced in the tax planner by the tax free transactions when they are posted. It's a workaround, but ideally Quicken will be fixed so the tax planner will recognize scheduled dividends and interest from tax free assets.

markus1957

No, but you can achieve the same effect by titling the reminder with the name of the security.

I do agree that Tax Planner could be improved to honor the Tax free check mark.  I can't see a technical reason that would prevent it.