Tax free accounts should show all revenus ( Interest, Dividends) as Tax free

Gilles9
Gilles9 Windows Beta, Mac Beta Beta
When someone has a tax free account, as RRSP or TFSA, all revenus ( dividends, interest, stock dividends) in that account should be considered as tax free
ex: Dividends from a Security in a Tax free account should report as Dividend Income Tax free ( in any reports we create )

It is not sufficient to declare/mark a Security as Tax free as that Security can be in a regular account (taxable) and also in a Tax free account

Othe wise Dividend Income tax free "category" mean very little
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  • jacobs
    jacobs SuperUser, Mac Beta Beta
    The "Dividend Income Tax Free" category is used only for securities marked tax-free, because, as noted above, such securities (e.g. a tax free bond fund) may be held in taxable accounts. But dividends earned in IRA accounts show up as "Dividend Income" in a category report, not "Dividend Income Tax Free". In a Tax Schedule report, such income is not included because Quicken knows income from tax-deferred and tax-free retirement accounts are not taxable income.

    I assume Quicken doesn't use "Dividend Income Tax Free" for retirement account income because then it would also need tax-free categories for all other types of investment income: Short Term Capital Gains Tax Free, Long Term Capital Gains Tax Free, etc. Rather than cluttering up the list of categories, Quicken determines what is tax free in the Tax Schedule Report.

    I do understand the desire to be able to create category reports, other than the Tax Schedule report, which separate taxable and tax-free income. If that is feasible, I'd support this idea. But I also don't find it hard to report on taxable or tax-free income simply by specifying which accounts to include in the report. 
    Quicken Mac Subscription • Quicken user since 1993
  • I have the same problem & while I know there are work arounds, there is a category -DivIncTaxFree but user cannot select it and the TFSA (in Canada) does not default to this category; it defaults incorrectly to -DivInc It seems to me to be an easy fix for all tax free accounts. Trying to identify a security as tax free is just silly in my view.
  • And the above comment applies to the Windows version too!!
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    @RDKQuicken For Quicken Mac, there really isn't an issue that I'm aware of. As I wrote above, as long as the account is set up as any retirement type account, no income from the account shows up in the tax report. The program doesn't define the income category as tax free; it simply know that all income in the account is tax free. Marking a security as tax free is needed for securities, such as government bond funds, which are tax-free and are held in non-retirement accounts. The works correctly in my experience. What are you seeing that doesn't work correctly in Quicken Mac? 
    Quicken Mac Subscription • Quicken user since 1993