Add Qualified Dividend As Option For Income (Div, Int, etc.) and Income Reinvested Transactions

SomebodyInGNV · January 21

I support the request that Qualified Dividends be addressed in a manner that allows the user to record dividends received as qualified dividends, where appropriate and known. It should be implemented in a manner that they are considered in the estimation of taxes in the tax planner and that the user can see the result.

Any changes implemented in the "Inc - Income(Div, Int, etc.)" transaction form should be reflected in the "Reinvest - Income Reinvested" form.

smutschler · February 6

Having followed this thread since its beginning, I don't believe anyone mentioned tax software export. So I'd like to explicitly add that the categorization of a transaction as Qualified Dividend (_QualDivInc) should not only affect the Tax Planner and Quicken's Tax Reports (Summary, Schedule B, etc.), but should also carry through properly to Schedule B and 1099-DIV fields when transferring data to tax software (such as TurboTax, which imports data directly from Quicken).

NotACPA · April 1

For the 6 stocks that I hold in taxable accounts, that are eligible for _QualDivInc, I edit the downloaded _Div transaction to change it to MiscInc, and record the _QualDivInc in the "Category for Miscellaneous" box.

SO, this suggestion would be helpful, but for only 24 transactions a year that I need to change it's certainly not critical for me.

And, with my change referenced above, and the correct setting of the Tax Line for that category, they do export properly. And they also appear properly on the Tax Schedule, Tax Summary & Investment Income reports

Jim_Harman · April 1

@NotACPA Please note that as discussed above and currently implemented, the amount of Qualified Dividends needs to be included on BOTH the Dividends line and the Qualified Dividends line in the Tax Planner and the corresponding sections of the Tax reports, just the way it appears in the broker's 1099-DIV form. In other words, _DivInc is total taxable dividends received and _QualDivInc is the portion of the total that is Qualified.

It does not appear that your method accomplishes that.

smutschler · April 2

Design recommendation: Add a new check-box to the Security data entity to indicate that any Dividends for that Security should be treated as "Qualified". This would be reasonable since, in most cases, dividends for a specific company (Security) are either all (100%) Qualified or Unqualified. For the odd case (like an ETF with partial Qualified Dividends), I can tolerate the need to enter a year-end adjustment to correct the numbers.

Note: Quicken already has a "Tax-Free" checkbox on the Security record (e.g. for municipal bonds) which causes Interest Income to be separated out into an appropriate Tax category on Tax Reports. A Qualified Dividends check-box would involve similar logic, whereby associated dividends would be tallied into a "Qualified Dividends" Tax category (as well as included in ALL dividends totals) on reports and Tax software exports.

NotACPA · April 2

@Jim_Harman You're correct that my method doesn't properly calc total Divs. But since those are so minor, in my case, that simple addition of the 2 values comes up with the correct Total Div, which is 75% Qual Div

Jim_Harman · April 2

in my case, that simple addition of the 2 values comes up with the correct Total Div, which is 75% Qual Div

I rely on the actual 1099s when preparing my tax returns. For the Tax Planner, I record all dividends as _DivInc and enter an adjustment on the Qualified Dividends line for the amount I expect to receive. The amount is usually quite consistent from year to year.

As discussed above, it certainly would be more accurate to be able to enter a percentage Qualified for each security. and have Quicken enter that amount automatically.

NotACPA · April 2

I have the preliminary cut of my taxes completed on January 1, relying upon my Q data … but i don't file until I've received all of the 1099's/etc.

There's FEW changes required when I get the tax forms from the various sources.

This was the 1st time I've had a QCD to report, and that took a bit of effort, but all in all, my Q tax records are pristine.

gtgerbo · April 12

I fully support this idea. It would be wonderful if Quicken were enhanced to allow users to record dividends as qualified dividends where appropriate and known.

My interest would be to see Quicken's Tax Reports capture this data. (I don't use Quicken’s Tax Planner much.)

I very much appreciate Jim_Harman's comment at 4/1 regarding how Qualified Dividends are reported on Form 1099-DIV: "In other words, _DivInc is total taxable dividends received and _QualDivInc is the portion of the total that is Qualified."

While the request to break out Qualified Dividends is great, from my perspective it does not go far enough.

A large portion of my investment holding is managed and held in mutual funds. Not only do I see Qualified Dividends (Form 1099-DIV, line 1b), but I’m also seeing Section 199A Dividends (Form 1099-DIV, line 5). Just like Qualified Dividends, Section 199A Dividends are portion of Total Ordinary Dividends reported line 1a. Depending on the fund a single dividend payout can involve qualified dividends, non-qualified dividends, and Section 199A dividends.

If this isn't enough, I experience Foreign Tax Paid reported on line 7, which ends up being a reconciling item between the NET dividends that I receive and the GROSS dividends reported on Form 1099-DIV, line 1a.

The Quicken forms for entering dividends and reinvested dividends are woefully inadequate from my needs. I'd like to see Quicken enhanced to allow users greater flexibility to separately record dividends as qualified dividends or Section 199A dividends. I'd also like to see Quicken enhanced to allow me to track foreign tax paid.

More for the developers to consider: There are other income types reported on the Form 1099-DIV that other users might be interested in capturing within Quicken - e.g., Section 897 gains, Section 1202 gains, exempt-interest dividends. I do not know what they are, how common they are, or their tax implications. All I know is that they are there.

Thank you for reading this far.

Jim_Harman · April 12

More for the developers to consider: There are other income types reported on the Form 1099-DIV that other users might be interested in capturing within Quicken - e.g., Section 897 gains, Section 1202 gains, exempt-interest dividends. I do not know what they are, how common they are, or their tax implications.

Quicken already handles exempt interest dividends, at least for securities that are exempt from Federal tax. If a security is set to "Tax free" in its Security Details, any interest or dividends entered on the normal Income or Reinvest pages will be assigned the _DivIncTaxFree or _IntIncTaxFree category as appropriate and is excluded from the Tax reports and the Tax Planner. This is very useful for Muni bonds and tax exempt bond funds.

Add Qualified Dividend As Option For Income (Div, Int, etc.) and Income Reinvested Transactions

Comments

Categories