bond and taxes status in quicken

JDB
JDB Quicken Windows Subscription Member ✭✭
in Investing (Windows)

is there a work around to record muni bond as tax free federally and federal bonds as tax free at state level. If I select tax free when using security detail that does not mean there is no taxation either state or federal.

I would like to record muni as tax free federally and maybe state as well depending.

I would like to record Federal bonds as whether tax free at state level or not.

Mainly want for tax planning

It would be better if quicken had the ability to select what type of tax free and the option to record income as federally taxable and state free, etc

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Comments

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Unfortunately Quicken only tracks whether income is subject to Federal taxes or not, and does not track state taxable income separately.

    It tracks state and local tax withholding and estimated tax payments, and the Tax Planner uses these in the Deductions section to compute your federal tax deduction, but the Tax Planner does not address state income taxes.

    To track whether income is state tax free, you would need an additional security level setting. You might be able to use the security's Investing Goal setting for that, if you are not using it for anything else. You could make goals of "Fed not State" and "State not Fed" You could then use the Investment Income report subtotaled by Investing goal to track the adjustments to your income for state tax purposes.

    QWin Premier subscription
  • JDB
    JDB Quicken Windows Subscription Member ✭✭

    thank you, that will do a decent job sorting out state and fed tax for my purpose

  • q_lurker
    q_lurker Quicken Windows Subscription SuperUser ✭✭✭✭✭

    Caveat: I have not attempted to vet this approach:

    Another possible approach would be to establish a separate "Security Type" for the various cases. Many investment reports offer grouping or subtotaling by Type, and that might be helpful for you. A drawback would be that these other security types won't carry the parameters like type of bond, or maturity and call dates. The 'tax-free' setting is available. The program has perhaps14 built in types (like Bond and Stock) but can have up to 32 total types.

    Whether this is better that an Investing Goal setting would be up to you to decide.

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