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What is the best method for tracking tax line items when multiple tax returns are created?

jrm

Q2019 R17.6 Build 27.1.17.6 Windows.

Hi. Long time Quicken user who recently upgrade from Q15. Having done so, and looking for reports for purposes different than I have used in the past, I am questioning how I have entered some of my historic transactions and wonder if there is a better way for future.

In particular, looking at categories that are tax related, such as interest or dividend income, investment expenses, etc., what is the best method for tracking these if the line item might apply to different tax returns? I have no issue using the categories (and having them associated with the tax line) when I know they are being used for my main tax return. (Disclaimer, I don't port into any tax program, but do use the tax related reports to help generate my information.)

However, I would like to also use the appropriate categories, with associated tax lines, for items that might go onto another individual's or entity's (non-business), tax return.

Should I be creating separate categories? Should I be using tax to differentiate and then customizing my reports to reflect this?

Thanks for any thoughts.

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Comments

UKR

I guess it would be best if you maintained separate Quicken data files, one each for each separate tax filer, e.g. yourself, your separate returns for your children, etc.

NotACPA

Well, for starters, you should probably be using multiple Q data files, instead of having everything in a single file.

A Q data file should contain ALL of the financial for a single "tax entity" and ONLY the info for that "tax entity". You've got multiple tax entities in a single file, thus leading to your predicament.

Alternatively, but much less desirable, is to use tags to distinguish between the various entities ... but then you'd have to be VERY diligent to consistently apply the proper tag to every transaction ... not just the taxable transactions. By applying tags to every transaction, you can provide separate Income and Expense reports for each entity.

jrm

@UKR and @NotACPA It never occurred to me to use separate Q data files. I've been using Q for such a long time, then when it came time for me to wish to track stuff of my kids, I added them into my own Q file as separate accounts. It lets me see the information quickly, and lets me transfer amongst the accounts -- as I do in real world. Presumably, using a separate Q data file would mean I would need to enter the transactions in each Q data file (and its accounts) separately, as opposed to being able to create one transaction with a "transfer" to another account.

As they've gotten older, the last few years, I've always assumed that once they take on true "management" of their own stuff, I would no longer track in Quicken and if I were providing something to them I would just use categories for that purpose.

The other entity is a non-business trust that I manage, and in this case too, I have desired to be able to handle transfers amongst accounts. Fortunately, at this time, the reporting needs have been minimal, but I could see down the road that it would become more involved/important.

I'll take a look at splitting, as well as the diligent use of tags.

Thanks for both comments

NotACPA

@UKR and @NotACPA It never occurred to me to use separate Q data files. I've been using Q for such a long time, then when it came time for me to wish to track stuff of my kids, I added them into my own Q file as separate accounts. It lets me see the information quickly, and lets me transfer amongst the accounts -- as I do in real world. Presumably, using a separate Q data file would mean I would need to enter the transactions in each Q data file (and its accounts) separately, as opposed to being able to create one transaction with a "transfer" to another account.

As they've gotten older, the last few years, I've always assumed that once they take on true "management" of their own stuff, I would no longer track in Quicken and if I were providing something to them I would just use categories for that purpose.

The other entity is a non-business trust that I manage, and in this case too, I have desired to be able to handle transfers amongst accounts. Fortunately, at this time, the reporting needs have been minimal, but I could see down the road that it would become more involved/important.

I'll take a look at splitting, as well as the diligent use of tags.

Thanks for both comments

When your children were minors, any taxable transactions that they had were probably recorded on YOUR IRS 1040. So, having them in your single data file was appropriate at that time. BUT, that seems to no longer be the situation.

RE: the kids, you'd need to show an Expense in your data file (e.g., Payment to Kid) and a non-taxable Income item in their file (e.g., Payment from Dad).

RE: the Trust, how are it's Income and Expenses reported to the IRS? Does the trust file it's own tax return? Or, is is included on someone else's return?

jrm

@UKR and @NotACPA It never occurred to me to use separate Q data files. I've been using Q for such a long time, then when it came time for me to wish to track stuff of my kids, I added them into my own Q file as separate accounts. It lets me see the information quickly, and lets me transfer amongst the accounts -- as I do in real world. Presumably, using a separate Q data file would mean I would need to enter the transactions in each Q data file (and its accounts) separately, as opposed to being able to create one transaction with a "transfer" to another account.

As they've gotten older, the last few years, I've always assumed that once they take on true "management" of their own stuff, I would no longer track in Quicken and if I were providing something to them I would just use categories for that purpose.

The other entity is a non-business trust that I manage, and in this case too, I have desired to be able to handle transfers amongst accounts. Fortunately, at this time, the reporting needs have been minimal, but I could see down the road that it would become more involved/important.

I'll take a look at splitting, as well as the diligent use of tags.

Thanks for both comments

You are correct re the kids as minors. One is still, the other no longer. So, work in my existing file for the expense to kid. Open Kid's data file enter the income -- w/o tax line attributed (similar to the way I enter reimbursements or gifts from family.)

Trust has its own TIN, and therefore files its own return. Which, I suspect, will be confirm your prior answer that it, too, should have its own Q data file.

NotACPA

@UKR and @NotACPA It never occurred to me to use separate Q data files. I've been using Q for such a long time, then when it came time for me to wish to track stuff of my kids, I added them into my own Q file as separate accounts. It lets me see the information quickly, and lets me transfer amongst the accounts -- as I do in real world. Presumably, using a separate Q data file would mean I would need to enter the transactions in each Q data file (and its accounts) separately, as opposed to being able to create one transaction with a "transfer" to another account.

As they've gotten older, the last few years, I've always assumed that once they take on true "management" of their own stuff, I would no longer track in Quicken and if I were providing something to them I would just use categories for that purpose.

The other entity is a non-business trust that I manage, and in this case too, I have desired to be able to handle transfers amongst accounts. Fortunately, at this time, the reporting needs have been minimal, but I could see down the road that it would become more involved/important.

I'll take a look at splitting, as well as the diligent use of tags.

Thanks for both comments

You got it.