Am I hallucinating

Or does the Tax Planner in QW18 allow you to estimate qualified dividends? The entry field is there ...

Comments

  • QPWQPW Member ✭✭✭✭
    edited October 2018
    Yes the entry is there.  It is there in Quicken 2017 too.
  • mshigginsmshiggins SuperUser ✭✭✭✭✭
    edited November 2017
    QPW said:

    Yes the entry is there.  It is there in Quicken 2017 too.

    It's there in QW2017? Was it added in a patch? I don't recall seeing it the last time I worked with the Tax Planner.
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited January 11
    It showed up in the Intuit migration Q17 release but the category is not integrated into tax planner yet; so it is not of much value. A step in the right direction though.

    IMO they should move it to the CapGains screen so they can integrate it into the tax calculation along side LTG; QDI and LTG are handled the same way in the tax calculations. Where it resides is not really important but Quicken is not so good at tracking related values in their code as changes arise; grouping related inputs serves as a reminder they are related. 
  • QPWQPW Member ✭✭✭✭
    edited November 2017
    QPW said:

    Yes the entry is there.  It is there in Quicken 2017 too.

    I was surprised to see the other day in Quicken 2018, and then just as a check when I saw this post I checked, and found it in Quicken 2017 too.
  • edited January 11
    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited November 2017

    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 

    That's odd. I maintain a tax testing file I use only to test Tax Planner. I have tried with quarterly scheduled QDI's of $25K and a $100K user input into the QDI box. Neither report in the Tax Summary as AGI or attribute any tax owed. Note this is the only entry in the planner table other than default deductions and exemptions in a married filing jointly scenario.


    Adding- OK, I figured it out; the QDI entry subtracts from the regular dividend entry and then enters into the tax calculation. I was assuming they were distinct values. I've taken a quick look and while it seems to be calculating regular tax correctly, it does not appear to be handing AMT correctly. I input $100K div and $100K QDI which should result in no AMT; the same as an entry of $100K LTCG. I suspect Quicken modified the regular tax calculation but forgot to or incorrectly modified the AMT calculation. 


    Adding further- IMO, I'm not sure that using QDI as a subtractor to regular divs is a practical way to integrate QDI into the planner; but maybe it is, I need to give that more thought. Functionally it would require the user to manually adjust the QDI amount as a user input.

    The details section is set up to accept scheduled transactions and register transactions with the assigned QDI category; treating QDI as a distinct value rather than a subtractor. The details section is at cross-purposes with the way QDI is currently being integrated into the tax calculation.


    Adding even further- it's probably not worth spending a lot of time on until the new tax proposal makes its way through congress. Other than to recognize if you use the QDI estimate box that any AMT associated with QDI is probably overestimated.
  • edited November 2017

    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 

    Thanks for your insight. To be clear, you're saying that currently the Tax Planner subtracts the user-inputed QDI amount from the total dividend amount and calculates the QDI amount at the LTCG rate, correct?

    In other words, you're not saying that TP just subtracts QDI and calculates the user's taxes without QDI being considered at all. I don't see how it could do the latter, but just wanted to confirm.

    Personally, I've never known what our actual QDI was for a given tax year until January/February of the following year, when the 1099s get sent out. I've used the method I mentioned upthread and it has worked pretty well. Granted, the blend of specific holdings in our taxable accounts has remained fairly consistent, so I'm able to estimate with fair consistency. This method might not work as well for someone whose holdings varied a good deal.

    Regardless, we've had brokerage accounts with Vanguard, Merrill, and Schwab for years and QDI transactions have never downloaded from any of them into any PFM I've ever used, Quicken included. Nor is that information available through their websites. So manually adjusting QDI in the Tax Planner as a user input is the only option I would have unless/until our FIs were to make that information available throughout the year. 
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited November 2017

    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 

    Yes, Quicken incorporates QDI into the regular tax calculation as you say in the first paragraph. In the AMT section the QDI input value is ignored and all dividends are treated as regular AMT income (26% tax rate); so keep  in mind if AMT exceeds regular tax you'll need to enter a credit to offset the tax rate difference. Basically Quicken forgot to change the equation to incorporate QDI in the AMT section.

    I agree since FIs do not download QDI status, the best way to handle dividends is to just manually input a QDI estimate. Dividends are fairly predictable so I have also entered quarterly estimates as scheduled transactions; estimating QDI for the year is then easier. The planner now provides a fairly accurate tax projection.

    Thanks for pointing out the input box had an effect on the tax calculation. I had dismissed it as a not yet useful work in progress, but as it turns out it is quite helpful.
  • mshigginsmshiggins SuperUser ✭✭✭✭✭
    edited November 2017

    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 

    Is there any mention of this in the Help for the Tax Planner?
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited November 2017

    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 

    No, the Help section provides very little detail related to any of the inputs in planner. Tax Planner help generally describes the various means of how data gets input into the planner. It might have been worth a mention in release notes though; it really is a useful feature, especially if they fixed the AMT oversight. 
  • edited November 2017

    FWIW, I entered an estimated amount into the QDI field in the QW18 Tax Planner and it definitely affected the TP's calculations.

    The estimated amount I used was an average percentage of actual QDI from our Vanguard taxable account's 1099-DIVs over the past four years. This average percentage has remained ballpark consistent; I typically enter it into TurboTax's What-If worksheet near the end of the year in order to punch something up before going in to meet with our accountant.

    The calculations spit out by the QW18 Tax Planner using my estimated QDI amount were pretty close to TurboTax's. 

    It’s a very useful feature, in my opinion. It’s been something I’ve been banging on about for years. The fact that they added this capability in a release and didn’t announce it is mystifying.


    Anyway, thanks again for your responses and for all of your efforts to help Quicken improve the tax planner.
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