dividends taxable and tax free (QWIN)
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I just ran across this thread, jumping in. I have a 401k account that holds a stock and I have a brokerage account that holds the same stock. The 401 (k) account has the tax deferred button pressed YES on the Account Details page (also says Account Type 401K), the brokerage account has the tax deferred button pressed NO on the Account Details page (also says account type brokerage). Clear so far?
Ok here is the problem the "stock" is a security in quicken and each account holds the same security. On the Edit Security details page, you can select Tax free or leave it blank. If I select tax free then the dividends for BOTH accounts show up as tax free. If I deselect the box, then the dividends for BOTH accounts show up as taxable.
So my experience is the button you select on the Security page controls whether something is treated as taxable or not taxable and the settings on the account pages do nothing.
Would love to get some feedback on this issue. I'm also having the same problem with a ETF that I hold in a IRA and also a brokerage account
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On the Security details page, leave that option unchecked. The SECURITY is NOT tax free … the account is.
BUT, there's apparently a bug (I just now, when testing, ran across it also) that causes dividends in Tax-free accounts to be reported as taxable on some reports (not on Tax Schedule or Tax Summary, but YES on Schedule B is you include a non-taxable account).
SO, have you reported this to Q Support?
And, in the short haul, your best bet is to simply exclude the retirement accounts from any tax related reports.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
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Just to clarify, the original question here was about Quicken Mac, but two replies above pertain to Quicken Windows and not Quicken Mac.
Quicken Mac Subscription • Quicken user since 19930 -
No I haven't reported to Q support. Was rather surprised to actually find this (shows wrong on the "Investment Income" report. I started noticing the _DivInc TaxFree amount was including dividends from a taxable brokerage account and those dividends are definitely taxable. Unless this is a new problem then this has been wrong for many years, and I just realized it. And yes I am running a Windows download not a Mac. This was as close to a like thread I could find.
Edit: It would appear this is also affecting reports "Schedule B- Interest and Dividends", "Tax Schedule", " Tax Summary". It is missing those taxable dividends (have the security set to non taxable).
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It would appear this is also affecting reports "Schedule B- Interest and Dividends", "Tax Schedule", " Tax Summary". It is missing those taxable dividends (have the security set to non taxable).
If you have the security set to non-taxable, then the Tax Reports are correctly disregarding those dividend transactions. If you want those Tax Reports to capture the dividends you need to set the security to taxable.
If a taxable security is included in a tax deferred and/or tax exempt account (i.e., IRA, Roth IRA, 401k) it is the account that will prevent the dividends in those accounts from being captured as taxable events.
Quicken Classic Premier (US) Subscription: R60.15 on Windows 11 Home
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You are correct. I've requested a Moderator to break off @tlwright21 from this thread and set it up as a QWin thread.
Quicken Classic Premier (US) Subscription: R60.15 on Windows 11 Home
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yes that is the way it should work, however it does not work that way. that is the bug that NotACPA stated in this thread that he proved fails to work correctly. How do we get this reported to Quicken so they can fix?
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Interesting. I have a taxable Money Market Fund that is in our taxable brokerage account, in 2 of our tax deferred IRA accounts and in 2 of our tax exempt Roth IRA accounts. The dividends received from this MMF into the taxable brokerage are being correctly captured in all of the Tax Reports and in Tax Planner. The dividends from this same MMF that are received into the IRA and IRA Accounts do not show up in any of my Tax Reports nor in Tax Planner. For me, I have the accounts set up to reinvest the dividends and that is how Fidelity downloads them. Maybe it is more of an issue if the dividends are paid into the cash balance instead of being reinvested?
To report an issue to Quicken:
- You can Call or Chat with Quicken Support during their working hours: .
- Within Quicken: Go to Help > Report a Problem. You will not get a ticket or reply from Quicken but the Quicken Team does get the report and will review it to see what action they might need to make.
Quicken Classic Premier (US) Subscription: R60.15 on Windows 11 Home
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Just thought of something: By default the tax deferred and tax exempt accounts are not to be included in the Tax Schedule reports. Go to the customization popup for these reports and make sure the tax deferred and tax exempt accounts are not selected for inclusion. If those boxes are checked, uncheck them.
Quicken Classic Premier (US) Subscription: R60.15 on Windows 11 Home
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In R60.15, when I open any of the built-in Tax reports, including the Schedule B report, accounts that are set to Tax Deferred are not selected by default. This is what prevents income, capital gains, etc. from being included in these reports.
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 the 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.
QWin Premier subscription0 -
In R60.15, when I open any of the built-in Tax reports, including the Schedule B report, accounts that are set to Tax Deferred are not selected by default. This is what prevents income, capital gains, etc. from being included in these reports.
Same here. This is what I meant when I said, "By default the tax deferred and tax exempt accounts are not to be included in the Tax Schedule reports." You said it more clearly.
I learned this many years ago when I ran into the issue that is being described in this thread. For me, after digging into it I found out that I had caused the issue, not Quicken, because I had customized my Tax Reports to include some new taxable accounts but instead of simply selecting the new taxable account I clicked on Select All. I don't remember who it was but a Super User helped me identify the cause which was then easily corrected by unchecking the tax-deferred and tax-exempt accounts from the Tax Reports.
BTW, don't go overboard on this by deselecting the transfer categories for tax-deferred and tax-exempt accounts. They still need to be selected for inclusion so things like distribution transfers are still properly captured by the tax reports.
Quicken Classic Premier (US) Subscription: R60.15 on Windows 11 Home
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BUT, there's apparently a bug (I just now, when testing, ran across it also) that causes dividends in Tax-free accounts to be reported as taxable on some reports (not on Tax Schedule or Tax Summary, but YES on Schedule B is you include a non-taxable account).
I am still on R56.9, so maybe this is a more recent 'bug' in the default accounts, but …
The behavior I see is that all tax reports including Schedule B default to excluding tax-deferred (retirement) accounts, but if the user overrides that account selection and includes such an account, the account transactions get reported. I do not see that as a bug, it is a user selection. Yes, the dividends from that account get reported as taxable dividends when they are not, but it is due to the user taking the specific action. The program should not (IMO) try to be smarter than the user.
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I'm on R60.15 and I don't see the non-taxable account selected by default either for the Schedule B report.
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