Categorizing a Transfer

Tbear

I have money transferred bi-weeky from my checking to my daughter's checking account. Both accounts are set up in our Quicken. By putting her account in the category line, the transfer shows up automatically in her account (and when looking at the transaction/transfer in her account, it properly shows that it comes from my account). The problem is that I wish to categorize these transfers as her "allowance" so to speak so that the itemization shows up in my reports. Is there any way to categorize these transfers? We are using Classic Windows Quicken 2023 on Parallels. Thank you in advance for any assistance.

RichardCSchreyer

While in your report, customize it to include transfers using the advanced tab.

splasher

Easiest solution is to NOT have your daughter's finances in the same data file as your finances. It is really a bad practice to combine two or more different taxable entities in a single Quicken data file.

If you continue to keep them combined, then the only option I can suggest is to not make it a transfer and have two transactions created, each with a category that signifies what it is, such as "Allowance Paid" and "Allowance Received".

Tbear

Solid advice. The idea was that every time I get paid, I automatically transfer the money to her checking account so I do not have to remember to pay her, write her a check, or manually deposit the money in her account as she is at university. The convenience of the transfer is great, but when we use the finance software for our tax/budget purposes, there is not categorization of these funds from my income as her "allowance". The money just shoots to her account. She should not have to pay taxes on these funds as they are just her "cash" and I have already been taxed on them. The total per year does not exceed $4K.

I could wait until the end of the year and just re-enter all of the transactions as a "cash" deposit into her account and as a transaction categorized as her "cash" account, thereby allowing me to properly itemize the total amount of money given to her for her allowance (the allowance paid and allowanced received you referenced).

The search tip also does help my husband's need to see this money as her cash. I feel like there is no good way to do this without manually entering or adjusting the transfer transaction, the convenient one, to a categorized transaction and then ensure that it is manually entered as well in her register as it would disappear when I change the [daughter's checking account] to a categorization for my account.

Not sure I am making sense, but this discussion is helping stretch my brain and my understanding of what I can do. As far as separating her finances, when she gets out of grad school she is on her own I guess. At least I hope.

splasher

IMHO, anyone in college should be tracking their own finances regardless of where the money is coming from. If they can't handle doing their finances when they are as simple as college life, they will have no concept of handling them in real life after getting their masters.

Tbear

I understand your POV. We do have her enter/download her transactions, categorize them, and reconcile her accounts. She is still a dependent for the last time. Like I said, it won't be much longer. I appreciate the support you offered as I tried to figure out the answer to my dilemma.