Why does Tax Planner count Employer Contributions as Adjustments to Income??

dennis.f.warren
Quicken Windows Subscription Member ✭✭
Tax Planner appears to be counting the Employer match of my 401(k) as adjustments to my taxable income. For example, if my bi-weekly 401(k) contribution is $500 and the employer match is $250, Tax Planner is counting both. This would reduce my Taxable income by $6,500 per year which in turn Tax Planner incorrectly calculates my estimated Taxes.
0
Best Answer
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First, verify that the 401(k) account is not set to associate a tax line item with inbound transfers: open the account, press Ctrl + Shift + E, select Tax Schedule.
Next, examine a paycheck transaction as a split: select a paycheck transaction and press Ctrl + Shift + S. The employer match should appear as two balancing entries: a transfer to the 401K account and a _401EmployerContrib entry. Verify the transfer does not have an associated tax line entry: select Edit > Tax line assignments.
5
Answers
-
First, verify that the 401(k) account is not set to associate a tax line item with inbound transfers: open the account, press Ctrl + Shift + E, select Tax Schedule.
Next, examine a paycheck transaction as a split: select a paycheck transaction and press Ctrl + Shift + S. The employer match should appear as two balancing entries: a transfer to the 401K account and a _401EmployerContrib entry. Verify the transfer does not have an associated tax line entry: select Edit > Tax line assignments.
5
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