Every month I reinvest the monthly dividends from a tax-free security, which has the tax-free box checked in the security properties window. The drop-down menu for the investment transaction does not include tax-free income.
@bartdawson Where, under the 'Planning' tab? [Budgets|Debt Reduction|Lifetime Planner|Tax Center|Savings Goals ?]
If you change from Expenses to Income and Show hidden categories selected, you should see the option at the end.