Quicken Tax Planner

Question

I am using Quicken Classic Premier on Windows 11 laptop. I am trying to reconcile my 2025 Federal 1040 tax return with the Quicken tax planner. I can reconcile everything except for the QBI deduction and the foreign tax credit. Does anyone have any suggestions how these amounts should be entered?

Steve

steveweaver48 · Answer

We are talking about tax year 2025.

mshiggins · Answer

Are we talking about tax year 2025 or 2026?

markus1957 · Answer

For both of these, the exact numbers will not be known until you get 1099s so I expect there will be varied opinions on how to best handle a projection in Quicken. Reconciling 2025 is not straight-forward either.

I have very little FTC to account for in terms of numbers of holdings so for projecting current year tax, I manually calculate the estimated foreign tax credit and enter the credit in the Other taxes, credits section of the Tax Planner. For 2025, just enter the credit from your tax return in that section.

For QBI/Section 199a dividends, I find treating them like qualified dividends in Tax Planner is "close enough for government work" for current year projections. For 2025, I would take- QBI total from the tax return X 20% X your marginal tax bracket rate and add that amount to the foreign tax credit in the credits section of Tax Planner. The QBI total should be included with the ordinary dividends (like on the 1099) and not included in qualified dividends.

If the QBI is coming from a mutual fund that also has QDI, with the new ability to designate QDI in Tax Planner make sure you don't have all of the dividend income from the fund set to report as QDI.