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Posted by PatJennings on January 23, 2007, 7:15 am
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I am trying to help a colleague record her Social Security income and have
not discovered a specific "Help" topic to advise. Her payment (monthly)
will include deductions for Medicare tax and Estimated Federal Income Tax.
It sounds like a simple pay statement split deposit.
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Posted by Hank on January 23, 2007, 9:09 am
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PatJennings wrote:
> I am trying to help a colleague record her Social Security income and have
> not discovered a specific "Help" topic to advise. Her payment (monthly)
> will include deductions for Medicare tax and Estimated Federal Income Tax.
> It sounds like a simple pay statement split deposit.
>
>
I enter it as a pay check using Q2005. Cash Flow; Banking Activities;
Set up Paycheck.
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Posted by JM on January 23, 2007, 9:11 am
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PatJennings wrote:
> I am trying to help a colleague record her Social Security income and have
> not discovered a specific "Help" topic to advise. Her payment (monthly)
> will include deductions for Medicare tax and Estimated Federal Income Tax.
> It sounds like a simple pay statement split deposit.
You indicated deductions include Medicare Tax - did you mean Medicare B
Premiums'?
Here is a link to one previous thread. Search on 'social security
income' will give you quite a few more hits.
http://tinyurl.com/yw397s
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Posted by R. C. White on January 23, 2007, 9:45 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 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)
>I am trying to help a colleague record her Social Security income and have
>not discovered a specific "Help" topic to advise. Her payment (monthly)
>will include deductions for Medicare tax and Estimated Federal Income Tax.
>It sounds like a simple pay statement split deposit.
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Posted by R. C. White on January 23, 2007, 10:04 am
Please log in for more thread options Hi, again...
Not that it matters, but...
> somehow relates to the payee's birthdate, and mine is the 10th day of
> January.
My birthday is the 10th of JULY.
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)
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