Some Tax line items (IRA distributions) not showing up in Tax Schedule and Tax Summary reports

DJW · February 19

I have been using the canned Tax Schedule and Tax Summary reports for several years now. In this case the Tax Line items (Total IRA taxable distrib.) are assigned to the outgoing transfers from 4 separate IRA accounts, the accounts are classified as Tax deferred in the properties. All of the outgoing transfers go to the same Bank 'Asset' account ( IRA Taxable Distributions).

The issue is that for 2023 only 2 of 4 transfers show up in the reports (1 transfer for each IRA account). All transactions are in the date range. Going back previous years do not have this issue.

From the destination Bank account I verified (via right mouse button menu) all 4 transactions had the same Tax Line item "Total IRA taxable distrib." assigned, yet only two show in the reports.

I do not know what else to check.

Thanks in advance, Dan

I am using current Windows Quicken Classic Business & Personal.

Jim_Harman · February 19

For distributions from an IRA to be included in the Tax reports, the transaction must be recorded as a deposit in the taxable receiving account, not as a transfer out of the IRA.

Here is a "Cheat sheet" for entering distributions from IRAs and other tax deferred accounts.

In the IRA, click on the gear at the top right and select Edit account details. Click on Tax Schedule and set Transfers out to 1099R: Total IRA taxable distrib., like this:

For the taxes to be recorded properly in Quicken, the transfer must be entered as a Deposit transaction in the receiving account. It can be a banking or an investing account, but it must be a taxable account, not another IRA for example. If there is already an Xout transaction in the IRA account that transfers money to the taxable account, note the amount and delete it before entering the Deposit. Do not try to edit the receiving end of the transfer.

In the receiving account:

1) Enter a Deposit transaction for the net amount of the RMD...a positive number.

2) Split the category:

Line 1 of the split: Category = the IRA account name in [square brackets] and the gross distribution amount...a positive number.
Line 2 of the split: Category = the Fed taxes withholding category that you use...a negative number.
Line 3 of the split: Category = the State taxes category that you use...a negative number.
Total of the split: Must equal the net amount of the deposit.

If you receive the distributions regularly, you can set this transaction up as an Income Reminder.

In the IRA account: Delete any downloaded brokerage transactions for

The net distribution
The Fed taxes withheld
The State taxes withheld

With this setup, the taxable income will be shown in the “1099-R Total IRA Taxable distrib.” and the tax withholding in the withholding sections of the Tax Schedule report.

I edited your title to clarify what the issue is.

DJW · February 20

Jim,

Thank you for the excellent write up.

The source accounts had the ‘Tax Schedule’ ‘Transfers Out’ set to "Total IRA taxable distrib."

The destination deposit account had the ‘Tax Schedule’ ‘Transfers In’ set to " blank"

What I did to correct my problem.

The two errant transactions were

1) a distribution\Transfer from a manual account (Certificate of deposit)

2) a distribution\Transfer from an automated account (Vanguard)

- In both cases I originated the transaction in the destination account. I did this via a copy\paste of the errant transaction. This resulted in ‘Cash Transferred out of Account’ transactions from the source accounts.

- In both cases I needed to balance the ‘Cash Balance’ for the source account. I did this by changing the ‘Record proceeds?’ attribute in the Edit Form from a ‘Transfer’ to ‘To this accounts balance’

Any attempt to change the source ‘Transaction Type’ from ‘Cash Transferred out of Account’ resulted in an incorrect Tax Schedule report.

So your solution of a creating a ‘Cash Transfer’ originating from a deposit account solved my problem.

Thank you for your help.

Dan

Jim_Harman · February 19