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Posted by PSJ on January 24, 2007, 10:15 am
Please log in for more thread options > Hi, Pat.
>
> Yes, it's very much "like a simple pay statement split deposit".
>
> My check is automatically deposited on the second Wednesday of each month.
> This system changed just about the time my SS benefits began in the year
> 2000. Earlier retirees got their checks on the 3rd day of each month.
> New retirees get paid on a new schedule; I don't know the "formula", but
> it somehow relates to the payee's birthdate, and mine is the 10th day of
> January. Since my wife's benefit is based on my account, her payday is
> the same as mine. For the past couple of years, Quicken has provided a
> "second Wednesday" option for scheduling the income in the Calendar, so
> that we no longer have to adjust the day each month.
>
> Note that the deduction for Medicare is not a tax, but an insurance
> premium. Medicare Part A coverage (for hospitalization) is automatic and
> not shown separately anywhere. Medicare Part B (for doctors, etc.) is
> optional and is deducted from the benefit payment. Everybody that I know
> has opted for Part B coverage. The amount has increased with inflation
> each year; for 2007, the premium is $93.50 per month for each of us; for
> 2006 it was $88.50 per month. This premium is deductible as a medical
> expense on our income tax return. See the thread JM mentions for further
> discussion of the tax effects of all this.
>
> My scheduled transaction records the deposit into my Checking Account.
> The Split records the gross amount to a Category named Social Security
> Income - RCW, and the Medicare premium deduction as a minus to Medicare
> Insurance:Medicare Part B - RCW. (My wife's checks go to similar accounts
> for her.) If I elected voluntary income tax withholding, I would add
> another split as a minus and send it to my FIT Prepaid Account. This, of
> course, is not an expense, but a prepayment of income taxes that may or
> may not be due next April.
>
> I don't recall whether these Categories were in Quicken by default or if I
> added them. I suspect that at least the benefits category was there
> because Help describes this as "Net social security benefits for taxpayer
> reported on Form SSA-1099." It obviously should be the gross benefits,
> because that's what must be reported by the taxpayer. The SSA-1099
> reports both gross and net amounts, as well as the Medicare premiums and
> income tax prepayments that have been deducted.
>
> The good news is that this has to be done just once to start, then
> adjusted in December each year to reflect the coming year's
> Hi, Pat.
>
> Yes, it's very much "like a simple pay statement split deposit".
>
> My check is automatically deposited on the second Wednesday of each month.
> This system changed just about the time my SS benefits began in the year
> 2000. Earlier retirees got their checks on the 3rd day of each month.
> New retirees get paid on a new schedule; I don't know the "formula", but
> it somehow relates to the payee's birthdate, and mine is the 10th day of
> January. Since my wife's benefit is based on my account, her payday is
> the same as mine. For the past couple of years, Quicken has provided a
> "second Wednesday" option for scheduling the income in the Calendar, so
> that we no longer have to adjust the day each month.
>
> Note that the deduction for Medicare is not a tax, but an insurance
> premium. Medicare Part A coverage (for hospitalization) is automatic and
> not shown separately anywhere. Medicare Part B (for doctors, etc.) is
> optional and is deducted from the benefit payment. Everybody that I know
> has opted for Part B coverage. The amount has increased with inflation
> each year; for 2007, the premium is $93.50 per month for each of us; for
> 2006 it was $88.50 per month. This premium is deductible as a medical
> expense on our income tax return. See the thread JM mentions for further
> discussion of the tax effects of all this.
>
> My scheduled transaction records the deposit into my Checking Account.
> The Split records the gross amount to a Category named Social Security
> Income - RCW, and the Medicare premium deduction as a minus to Medicare
> Insurance:Medicare Part B - RCW. (My wife's checks go to similar accounts
> for her.) If I elected voluntary income tax withholding, I would add
> another split as a minus and send it to my FIT Prepaid Account. This, of
> course, is not an expense, but a prepayment of income taxes that may or
> may not be due next April.
>
> I don't recall whether these Categories were in Quicken by default or if I
> added them. I suspect that at least the benefits category was there
> because Help describes this as "Net social security benefits for taxpayer
> reported on Form SSA-1099." It obviously should be the gross benefits,
> because that's what must be reported by the taxpayer. The SSA-1099
> reports both gross and net amounts, as well as the Medicare premiums and
> income tax prepayments that have been deducted.
>
> The good news is that this has to be done just once to start, then
> adjusted in December each year to reflect the coming year's
> inflation-adjusted amounts to begin in January.
>
> 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 Ultimate x64)
>
Along w/RC's excellent explanation -- I add a class to each split
transaction, 1 for spouse 1 for me (example /pjss or /djss). With classes
added everything imports to TurboTax w/o problems.
--
PSJ
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