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How to categorize IRA Distributions for tax reporting

I have just started taking distributions from an Inherited IRA. The activity downloaded into the Inherited IRA Account set up in quicken. I am a long time sufferer using Wells Fargo Bank & Wells Fargo Advisors. The activity downloaded into the Inherited IRA Account along with the Fed & State tax W/H amounts. WFA showed the transfer of the Net funds in my muni bond account which is what I decided to use as the destination.

Since the Inherited IRA account is set up in the retirement section the 1099-R's does not show up in the tax Schedule.

So here is what I did but backed up the file prior to doing this:

1. Deleted the W/H line items from the IRA account

2. Adjusted the transfer to the Muni Account to reflect the gross $$, than made sure the transfer was set up correctly in Qm between the IRA & Muni account

3. Setup the following Categories:
  a. Inherited IRA Distribution: 1099-R..ira federal tax w/h..checked the expense box in the category
  b. Inherited IRA Distribution: 1099-R..ira State tax w/h..checked expense box in the category
 
4. In the destination register which in this case is the Muni account register , edited the gross amount and set up splits to reflect the tax w/h, fed & state. 

As a result the fed & state w/h shows up in the Tax Schedule as an expense which I think is correct & the only way to make this work properly.

Both accounts in question appear to be correct but in the spending wheel I show only the Fed w/h not the state w/h. When I click on the wheel the transaction appears as I believe it should. 

So my question is why does the spending wheel not reflect the state w/h ?



Answers

  • lhossuslhossus SuperUser ✭✭✭✭✭
    I set up the scenario you described and the wheel shows what I would expect. I. e., I drill down in the wheel: Spending > Taxes > State and I see two segments of the wheel: St Estimated, and St IRA Dist W/H, with the expected amounts.

    I think you will need to provide some screenshots to show exactly what you have done and the results.

    PS: I assume by spending wheel you are referring to the Spending By Category wheel on the Home tab.
    Quicken Mac Subscription
    macOS Mojave 10.14.6
  • ConcordmanConcordman Mac Beta Beta
    Let me be a bit more precise, as l mentioned above when I drill down I see the transaction & the splits federal & state w/h. The question I have is when I have the mouse over this segment of the pie only the federal w/h $$ are. highlighted . as an example say the federal w/h is $200.00 , the state w/h is $50.00, would expect the pie segment to reflect $250.00. In my situation the drill down into the transactions is correct , it’s just when that pies segment is highlighted with the mouse hovering over it reflects fed w/h only.

    summary, not a biggie as the transaction is correct where it matters just thinking the wheel issue might be a bug. Thanks for the response.
  • lhossuslhossus SuperUser ✭✭✭✭✭
    I cannot follow your textual description. Sorry. Probably a difference in expectations.

    A picture is worth a thousand words.
    Quicken Mac Subscription
    macOS Mojave 10.14.6
  • Rocket J SquirrelRocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    edited November 2020
    Sorry, I failed to notice this was a QMac question. QWin reply deleted.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
This discussion has been closed.