|
Posted by JM on September 3, 2006, 10:16 pm
Please log in for more thread options
JM wrote:
> 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?
>
> Here's how I handle mine:
>
> Create an icome category; e.g., SocSec_Self, [or SocSec_Spouse].
> Assign tax line item; 'Form 1040:Social Security Income, self'' [or
> spouse]
> Assuming you are taking advantage of the Medicare Part B coverage -
> create an expense category; e.g., Medical:Part B, self, and assign tax
> line item Schedule A:Medicare Part B Premium, self.
>
> Create a scheduled transaction with splits.
> The first split item is the total monthly income
> The second split item is the deduction for Medicare Part B.
> The net is the deposit to your account.
>
> There is no way within QW to determine the taxable/non-taxable portion
> in advance - that depends on other income such as taxable retirement
> account draws, pension payments, investment income including interest,
> dividends and cap gains/losses, etc. Your tax program [e.g., TTax]
> rolls all of this info together and makes the determination in the
> SocSec worksheet at year end.
>
> QW's Tax Planner assumes SS income is 100% taxable by default - one
> reason I don't find the Tax Planner feature useful. I do use last years
> version of TTax to estimate this years taxes and this gives me an
> estimate of the taxable/non-taxable split for SocSec income. One can
> then use this info from TTax and make an adjustment in the Tax Planner
> if desired. I see no advantage to creating an extra split in the
> deposit transaction to try and identify the taxable/non-taxable
> portions.
Has occurred to me that if you are using or plan to use the tax
reporting capabilities of QW and do plan to interface with TTax, one
should not attempt to split the entry in QW between taxable and
non-taxable. This would defeat, or at least complicate the tax handling
in TTax [or other tax software].
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap