In TaxTank, dividends are added and managed in the Holdings Tank. When adding dividends in TaxTank, it's essential to understand that the grossed-up amount impacts your taxable income, while the franking credit is applied as a tax offset, reducing the amount of tax you pay and maximise any refunds.
Adding dividends in TaxTank is simple and quick. Here’s how you can do it:
Go to Holdings Tank:
Open the Holdings Tank.
Click on the 'Income' tab.
Add Income:
Click the 'Add' button to open the Add Income popup.
Enter Payment Details:
Amount: Enter the payment received.
Date: Enter the date you received the payment.
Category: Select 'Dividend' from the dropdown. This will show more fields.
Provide Dividend Information:
Description: Type the share name or ticker.
Franking Credit: Enter the franking credit amount.
Franked and Unfranked Amounts: Make sure they add up to the total payment received.
Select Payer:
Choose the payer, usually the ticker symbol. Add a new payer if it’s your first time receiving a dividend from them.
Attach Statement:
Attach your dividend statement for easy record-keeping.
Save:
Click 'Save'.
You’re done! Your dividend payment will now appear in the Income tab, and the income and franking credit will be reflected in your tax summary. This keeps you on track with your taxes and helps maximise any refunds.
Quick Tip for Allocating Dividend Payments from Bank Feeds
If you've received a dividend payment in a bank account linked with TaxTank, you can easily allocate it directly from the bank feeds. Here's how:
Locate the Dividend Payment:
Find the dividend payment in your bank feeds.
Select the Holdings Tank:
Choose the 'Holdings Tank' chart of accounts.
Choose the Dividend Category:
Select 'Dividend' from the category dropdown.
Continue to the Income Form:
Click 'Continue' and complete the Income Form as described in the previous steps.
