|
Posted by R. C. White on December 4, 2006, 12:40 pm
Please log in for more thread options Hi, Stewart.
No one - not even the IRS - knows how much of your Social Security benefits
will be taxable until you file your return after the year is ended.
For many retirees, SS is their only income, and not much of that. For them,
probably none of the monthly check will be taxed. But others will have a
lot of income - interest, dividends, even salaries - and for them, up to 85%
of the SS check might be taxable.
But the range of possibilities are much more complicated than that. Many
investors have no other income until near year-end, when a big windfall
comes their way. Others have plenty of income - until they realize losses
near the end of the year, perhaps as part of their tax-planning strategy.
Even salary earners might have big income early, then get laid off, changing
their full-year income picture dramatically. There is no way that SS or
Quicken can take all these factors into account and predict how much of YOUR
pension will be taxable for THIS year. And next year very well may be
different. You might even get married - or divorced - before the end of the
year and that would foul up all the calculations! :^}
In my case, I just enter my check as a split transaction:
Social Security Income
$1,000.00
Medical Insurance Expense:Medicare Part B
-88.50
Checking Account
$ 911.50
For now, all I need to know is that I have some income and some expense,
with the difference increasing my bank balance. When I prepare my return,
I'll let TurboTax figure out how much of the income is taxable, and how much
of my Medicare premium is deductible, based on ALL the facts in my return,
not just the Social Security checks I've received.
> I guess I'll just split it into two parts.
Which two parts did you have in mind?
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Vista x64)
> It is income not just a deposit. In addition a portion is taxable and
> a portion is not.
>
> I thought Quicken would have something built in for Social Security
> retirement income but all they have in the help section are adds for
> add-on products.
>
> I guess I'll just split it into two parts.
>
>
>
>>
>>Stewart Berman wrote:
>>> How do I setup a Social Security retirement check in Quicken --
>>> including breaking it into it's taxable and non taxable components?
>>>
>>> I assume it is some sort of split transaction but what kind?
>>
>>It would be a deposit. Care to ask something more specific?
>>
>>db
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap