Showing IRA tax payments on Tax Schedule Report

dennismd

How do I display IRA federal and state tax payments made directly from my IRA account but not other IRA transactions. If I include my IRA account it shows all dividends, trades, etc. If I don't include the IRA account, it won't show tax payments.

NotACPA

Nothing in a tax advantaged account will show in one of Q's tax reports.

SO, you need to record a fictitious cash transfer FROM the IRA to a taxable account and report those tax payments as if they came from the taxable account.

NotACPA

Nothing in a tax advantaged account will show in one of Q's tax reports.

SO, you need to record a fictitious cash transfer FROM the IRA to a taxable account and report those tax payments as if they came from the taxable account.

dennismd

That's what I thought. Thanks!

jacobs

There are ways around this. The first is simply to include the retirement account(s) in your report. Click on Edit report, click on the Account tab, click Selected Accounts, and add in the retirement account(s) with your withdrawals.

That's great for your 1099-R income, but it also will add investment income from that account in there Schedule B section, which you don't want.

Here's the "hack" you can use to make your taxable withdrawals from a retirement account shows up in tax reports:

(a) In the IRA account, create a transaction to record the Sale of the security, creating a cash balance in the account.

(b) In a checking, savings or non-retirement investment account, create a transaction to Transfer the cash out of the IRA account into the receiving account. If federal and/or state taxes were withheld at the time of the sale, the transaction is a split, with one (or more) lines for the taxes withheld and one for the gross amount of the IRA sale.

You might have those two transactions already. Here's the hack:

(c) In the same transaction in the receiving account which does the transfer, add two more split lines: (1) Use Category "Personal Income:Taxable IRA Withdrawal", which is assigned to the proper 1099-R tax line for the Tax Schedule report, with the amount of the total RMD withdrawal. (2) Use category "Adjustment" for the negative of the same amount, because that category is not included in any report.

Note that the transfer transaction with the splits must originate in the checking or receiving account, not the IRA account; if the split to record the income is in the IRA account, it won't show up in the Tax Schedule report because the Tax Schedule report bypasses IRA accounts. 

Because this is a crude work-around and certainly not intuitive, I'd encourage you to add a vote for the feature request to build taxable IRA withdrawals functionality into Quicken Mac:

https://community.quicken.com/discussion/7335879/quicken-mac-needs-a-wizard-to-handle-two-types-of-ira-withdrawals-rrif-accts-29-legacy-votes

dennismd

Thanks. I added my vote.