DIvidends from taxable and tax-defered account all show up under "Dividend Income".
When creating a budget, income should only include taxable dividends from Schedule B, but instead ANY dividend shows up as income - which is wrong
Normally you would not include tax deferred accounts in your budget. You can include transfers to and from those accounts in your budget as income and expenses for budgeting purposes.
The Tax Free setting for a security is for securities like municipal bonds and tax exempt bond funds, whose income is not subject to Federal tax. If a security is marked Tax Free, its income does not appear in the Tax reports even if it is in a taxable account. Any realized capital gains from these securities ARE correctly included in the tax reports.
Investing reports, on the other hand, do include tax deferred accounts even though the income and other distributions are not taxed. This is apparently by design. If you only want to see taxable income and capital gains in these reports, you must exclude the tax deferred accounts.
In the Investing reports, income from securities marked Tax Free is included, with the Category _DivIncTaxFree or _IntIncTaxFree. These Categories are set automatically when you record interest or dividend income from these securities.
There are many people who want to see dividend income, regardless of which type of account it is in, in their budgets. This is especially true of people who are retired and depend on that dividend income to cover their living expenses.
If you do not want dividends in tax-free or tax deferred accounts showing up in your budget, you can customize your budget to remove those accounts from it. To do this, in the Budget View click on Budget Actions to bring up the Customize popup. Then you can deselect the accounts you wish to have excluded from the budget.:
@Froemelt
"DIvidends from taxable and tax-defered account all show up under "Dividend Income"."
This suggests that you haven't set the attributes of your Tax-deferred accounts AS BEING tax-deferred.
If you fix that, your issue should vanish.
The best way I have found to handle these transactions is to change them from "Dividend Income" to "Payment/Deposit". You can then categorize them with a regular Income / Expense category. Perhaps this "breaks" a functionality in Quicken, but I use this as a work-around for Retirement accounts. I have a "Retirement Account Non-taxable Dividends" and "Retirement Account Non-taxable Interest".
If Retirement accounts are properly set as "Tax Deferred" neither dividends nor interest will show up as taxable income anywhere in Quicken. Why do you feel you need to use that work-around?
Regarding what functionality that work-around might be breaking: I think the biggest "break" would be that the Retirement Accounts dividends and interest would then show up in tax reports and Tax Planner as taxable distributions from the Retirement Accounts and that is something that most people do not want to have happen.
I note that both @Froemelt and @Quicken CPA are Quicken Mac subscribers. This is posted under a Quicken Win community category. I believe Mac and Win versions may operate differently in this regard.
