Does Tax Planner have issues picking up last years inc/exp to produce expected Inc Tax results?

dsttexas

My Tax Planner is set to 2019, and is not picking up IRA RMD withdrawals, nor my Pension payments as taxable income. Social Security and other income is there. It is essentially proposing complete refund of all taxes withheld last year. ALL other reports, such as my Itemized Report or Taxable Itemized Report show all the data just fine. The Tax Summary Report from the Tax Center page does add in Pension, but still no IRA withdrawals. Other reports on the Tax Center page are YTD, so no help for 2019.

Sherlock

I suggest you verify that the transfer transactions from the IRA are assigned the appropriate tax line item.  For example, 1099-R:Total IRA taxable distrib.  This may be applied by opening the register, pressing Ctrl + Shift + E, selecting Tax Schedule, the tax line item in the Transfers out: pull down menu, OK, and OK.

dsttexas

OK. Got it all straightened out. Also followed instructions in "FAQ: Best way to handle distributions from IRA".

Sherlock

dsttexas said:

Well guys, things just got worse and I have no idea why. After making the adjustments from your comments and the FAQ, it all seemed fine - and very closely matched my Turbo Tax results previously entered manually using data from Quicken. Then I went back into Quicken for something and found it was screwed up again regarding IRA distributions. After many hours of trying to get back to prior results by re-following the suggestions, nothing worked.

So I captured screen shots of account settings, and transactions, and report outputs hoping you or someone can tell me how to fix this. Attached.

I soooo appreciated all you guys do.

The account entered for the transfer in the Cindy Trust split appears to be incorrect.  I think it should be: [Cindy's IRA]

Sherlock

dsttexas said:

Correct! Thank you!

Fixed that and it moved hers in with mine. But still not showing IRA distributions as taxable income, but as transfers. See attached.

The distributions are transfers but should be treated as taxable income when assigned an appropriate tax line item.

We're now moving on from the Tax Planner to reports.

If you expand the transfer accounts on the Tax Summary report you should be able to confirm the Tax Item.  You may prefer the appearance of the Tax Schedule report.

I'm not familiar with the Itemized Tax Categories, A, B, D, C, F report but if you check the IRA accounts on the Categories tab, uncheck the IRA accounts on the Accounts tab, and do not exclude all transfers on the Advanced tab when you customize the report, the IRA distributions should appear.

Sherlock

dsttexas said:

Ok guys, latest status in trying all your suggestions is both IRA RMD's and both SS show correctly in all Tax or other reports. However, my pension payments do not in a couple cases.

My Pension category is named "Pension - IBM Gross" and is set to: "1099-R: Total Pension Gross Dist." It is checked in the Category list for each report's settings and is set as "inc".

The Tax Summary Report has it correct - pension and SS under Income, IRA RMD's under Transfers. The Tax Schedule Report also has it correct, SS on Form 1040, and 1099-R's for both RMD's and Pension.

However, the Tax Planner under "Taxable IRA/Pension" line item only shows the two SS incomes and no pension. And checking the "Projected Tax" list item "Other Income" brings up the same panel with only the SS amounts. This is where the projected Tax Due/Refund is incorrect, and does not match Turbo Tax.

Your thoughts?
Thanks,
Don

If the pension distribution is taxable, it should be associated with 1099-R: Total pension taxable dist.

Sherlock

I suggest you verify that the transfer transactions from the IRA are assigned the appropriate tax line item.  For example, 1099-R:Total IRA taxable distrib.  This may be applied by opening the register, pressing Ctrl + Shift + E, selecting Tax Schedule, the tax line item in the Transfers out: pull down menu, OK, and OK.

Boatnmaniac

In addition to what Sherlock states:  This works for transfers out of an IRA account to your bank account.  Make sure that your IRA transactions are "Cash Transferred Out of Account". 

If you are not using transfer out transactions and instead are categorizing them, make sure the categories you are using have the appropriate 1099-R:Total IRA taxable distrib. or 1099-R:Total pension taxable dist. tax line items associated with them.  To add or change tax line item associations, go to Edit Category and click on the Tax Reporting tab where you can make the necessary changes.

dsttexas

OK. Got it all straightened out. Also followed instructions in "FAQ: Best way to handle distributions from IRA".

dsttexas

Well guys, things just got worse and I have no idea why. After making the adjustments from your comments and the FAQ, it all seemed fine - and very closely matched my Turbo Tax results previously entered manually using data from Quicken. Then I went back into Quicken for something and found it was screwed up again regarding IRA distributions. After many hours of trying to get back to prior results by re-following the suggestions, nothing worked.

So I captured screen shots of account settings, and transactions, and report outputs hoping you or someone can tell me how to fix this. Attached.

I soooo appreciated all you guys do.

Sherlock

dsttexas said:

Well guys, things just got worse and I have no idea why. After making the adjustments from your comments and the FAQ, it all seemed fine - and very closely matched my Turbo Tax results previously entered manually using data from Quicken. Then I went back into Quicken for something and found it was screwed up again regarding IRA distributions. After many hours of trying to get back to prior results by re-following the suggestions, nothing worked.

So I captured screen shots of account settings, and transactions, and report outputs hoping you or someone can tell me how to fix this. Attached.

I soooo appreciated all you guys do.

The account entered for the transfer in the Cindy Trust split appears to be incorrect.  I think it should be: [Cindy's IRA]

dsttexas

Correct! Thank you!

Fixed that and it moved hers in with mine. But still not showing IRA distributions as taxable income, but as transfers. See attached.

Sherlock

dsttexas said:

Correct! Thank you!

Fixed that and it moved hers in with mine. But still not showing IRA distributions as taxable income, but as transfers. See attached.

The distributions are transfers but should be treated as taxable income when assigned an appropriate tax line item.

We're now moving on from the Tax Planner to reports.

If you expand the transfer accounts on the Tax Summary report you should be able to confirm the Tax Item.  You may prefer the appearance of the Tax Schedule report.

I'm not familiar with the Itemized Tax Categories, A, B, D, C, F report but if you check the IRA accounts on the Categories tab, uncheck the IRA accounts on the Accounts tab, and do not exclude all transfers on the Advanced tab when you customize the report, the IRA distributions should appear.

Boatnmaniac

These are two different reports serving different purposes.

The Tax Schedule report tracks IRS tax events and transfers out of an IRA is an IRS tax event.  It is not an accounting Income & Expense report.  Transfers out of an IRA/401k to a taxable account might be new income to the IRS (because it was previously deferred income) but it is simply a transfer of cash between accounts as far as anyone other than the IRS and tax accountants are concerned.

The Tax Summary report is really nothing more than an accounting Income & Expense report or Itemized Categories report of tax related categories...it is not an IRS tax schedule.  So, this report rightfully reports it as a transfer because it is not new income.  This report can make tax time easier because it will summarize the dollars by category which can simplify filling out tax forms.  We just need to remember that those transfers out of the IRA go into the 1099-R bucket.

dsttexas

Ok guys, latest status in trying all your suggestions is both IRA RMD's and both SS show correctly in all Tax or other reports. However, my pension payments do not in a couple cases.

My Pension category is named "Pension - IBM Gross" and is set to: "1099-R: Total Pension Gross Dist." It is checked in the Category list for each report's settings and is set as "inc".

The Tax Summary Report has it correct - pension and SS under Income, IRA RMD's under Transfers. The Tax Schedule Report also has it correct, SS on Form 1040, and 1099-R's for both RMD's and Pension.

However, the Tax Planner under "Taxable IRA/Pension" line item only shows the two SS incomes and no pension. And checking the "Projected Tax" list item "Other Income" brings up the same panel with only the SS amounts. This is where the projected Tax Due/Refund is incorrect, and does not match Turbo Tax.

Your thoughts?
Thanks,
Don

Sherlock

dsttexas said:

Ok guys, latest status in trying all your suggestions is both IRA RMD's and both SS show correctly in all Tax or other reports. However, my pension payments do not in a couple cases.

My Pension category is named "Pension - IBM Gross" and is set to: "1099-R: Total Pension Gross Dist." It is checked in the Category list for each report's settings and is set as "inc".

The Tax Summary Report has it correct - pension and SS under Income, IRA RMD's under Transfers. The Tax Schedule Report also has it correct, SS on Form 1040, and 1099-R's for both RMD's and Pension.

However, the Tax Planner under "Taxable IRA/Pension" line item only shows the two SS incomes and no pension. And checking the "Projected Tax" list item "Other Income" brings up the same panel with only the SS amounts. This is where the projected Tax Due/Refund is incorrect, and does not match Turbo Tax.

Your thoughts?
Thanks,
Don

If the pension distribution is taxable, it should be associated with 1099-R: Total pension taxable dist.