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How do you enter the Category - Investments:Dividend Income Tax-Free

In the Categories Window under Investments is a category named Dividend Income Tax-Free with the same description which is a "required" category (non-deletable). I have found it impossible to enter this as a category for any transactions in my investment accounts. It is not a selectable category, and if I try to add the Tax-Free to the end after selecting the Dividend Income category I am told that none match and it simply reverts to Dividend Income.

Eric H

Best Answers

  • MontanaKarl
    MontanaKarl Member, Windows Beta, Mac Beta Beta
    edited March 30 Accepted Answer
    As far as I know, you cannot actually enter that category ... it is auto-selected ONLY if the associated security has been flagged as "Tax-free".

    Go to Porfolio view, click a security and then the Edit Security button.  To the right of the Security Name, you'll see a checkbox for "Tax-free".  Having that box checked will result in the classification of interest or dividends from that security as tax-free.

    Quicken Windows and Mac subscription.  Quicken user since 1990.

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    You don't select this category; Quicken knows when to use it behind the scenes.

    In your investment account, if you received a dividend, you'd select transaction type = Income > Dividend; if you received a dividend which was reinvested, you'd select Reinvest > Dividend.

    So now you're asking: but how do I tell Quicken that this is a tax free transaction? If this entry is in a retirement account, Quicken knows it is tax free. If this transaction is for a tax-free security (e.g. tax-free bond fund) in a regular investment account, you should check the Tax-Free checkbox on the security set-up screen. Using this check box for the security will result in Quicken using the Investments:Dividend Income Tax Free category when you run the Tax Schedule report. (It will report the dividends, but under a tax-free heading.)
    Quicken Mac Subscription • Quicken user since 1993

Answers

  • MontanaKarl
    MontanaKarl Member, Windows Beta, Mac Beta Beta
    edited March 30 Accepted Answer
    As far as I know, you cannot actually enter that category ... it is auto-selected ONLY if the associated security has been flagged as "Tax-free".

    Go to Porfolio view, click a security and then the Edit Security button.  To the right of the Security Name, you'll see a checkbox for "Tax-free".  Having that box checked will result in the classification of interest or dividends from that security as tax-free.

    Quicken Windows and Mac subscription.  Quicken user since 1990.

  • jacobs
    jacobs SuperUser, Mac Beta Beta
    Accepted Answer
    You don't select this category; Quicken knows when to use it behind the scenes.

    In your investment account, if you received a dividend, you'd select transaction type = Income > Dividend; if you received a dividend which was reinvested, you'd select Reinvest > Dividend.

    So now you're asking: but how do I tell Quicken that this is a tax free transaction? If this entry is in a retirement account, Quicken knows it is tax free. If this transaction is for a tax-free security (e.g. tax-free bond fund) in a regular investment account, you should check the Tax-Free checkbox on the security set-up screen. Using this check box for the security will result in Quicken using the Investments:Dividend Income Tax Free category when you run the Tax Schedule report. (It will report the dividends, but under a tax-free heading.)
    Quicken Mac Subscription • Quicken user since 1993
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited March 30
    Short form.  Dividends aren't tax-free.  Securities and accounts are possibly tax-free  or tax deferred. and that makes that security and any securities in such an account tax-free or tax deferred.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • E Hughes
    E Hughes Member
    Thanks, makes sense. Never knew that check box was there as I rarely (if ever) have edited a security.
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