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Tax report for schedule A does not include transfers?

jdw908785

I have set up a liability/other account in Quicken to track an outstanding balance I have with a local hospital. The liability account has the "Tax Schedule Information" box set to "Transfers in: Schedule A: doctors, dentists, hospitals" The hospital auto-drafts payments monthly on my credit card, also set up as an account in Quicken. The payment transactions in the credit card account are categorized as a transfer from my credit card account to the liability account and works nicely to track the balance of the liability. However when I run a Tax Report - Schedule A it does not include the amounts paid toward the liability from the credit card. I have tried changing the liability account "Tax Schedule Information" to Transfers out: Schedule A, and both Transfers in: and Transfers out together. Nothing changes on the report. The "Tax Report Summary" does correctly include the liability paid amounts under a "Transfers" heading at the end of the report. I cannot find a way to include transfer transactions in the Schedule A report customization dialog box. Any help would be appreciated.

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Accepted answers

UKR

Alternatively, your liability account could have been created with

Opening Balance 0.00
No entry in the Tax Schedule section.
First transaction: the bill from the hospital for the full amount, categorized to a Doctors, Hospital expense category with the correct Schedule A line item
Monthly payment transactions as transfers from checking to liability account

This would have categorized the entire bill due for taxes in the year you went to the hospital. The monthly payments are just paying off the debt over time.

I'm not quite sure what the preferred tax treatment for hospital expenses should be. A tax professional can tell you.

markus1957

As a workaround, I'm going to offer yet another way of handling the liability account balance. I've used accounts in my test file to demonstrate but substitute your liability account where you see Test Brokerage and your credit card account for the Cash Account.

For each credit card payment, use a category split with 3 lines. Line one of the split should be assigned a category with the Schedule A tax line you desire, just like a normal credit card transaction. Line two should be a transfer of the payment amount to the liability account. Line three should be a transfer into the credit card account for the negative value of the credit card payment.

The two transfers will cancel each other out in the credit card account. The Line 2 transfer will reduce the liability account balance. The Line 3 transfer as it is a transfer into the account itself, will not affect the running balance of account. The transfer back into itself is a useful feature when trying to get Quicken to do two things that it does not really want to do.

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All comments

Jim_Harman

Check the Schedule A report to make sure the liability account is included in the Category selections. It will be near the bottom of the list.

UKR

Alternatively, your liability account could have been created with

Opening Balance 0.00
No entry in the Tax Schedule section.
First transaction: the bill from the hospital for the full amount, categorized to a Doctors, Hospital expense category with the correct Schedule A line item
Monthly payment transactions as transfers from checking to liability account

This would have categorized the entire bill due for taxes in the year you went to the hospital. The monthly payments are just paying off the debt over time.

I'm not quite sure what the preferred tax treatment for hospital expenses should be. A tax professional can tell you.

markus1957

jdw908785

Thanks to all that replied. I will setup some test accounts and try the work-around this week. I will also check to see if only my payments or if the entire balance for the liability account is deductible in the current tax year. For the Schedule A report the liability account was not listed in the "Category" selection box but was selected in the "Accounts" box. Both the "Category" and "Accounts" boxes are set to "Select All". Thanks again.

Boatnmaniac

jdw908785 said:

Thanks to all that replied. I will setup some test accounts and try the work-around this week. I will also check to see if only my payments or if the entire balance for the liability account is deductible in the current tax year. For the Schedule A report the liability account was not listed in the "Category" selection box but was selected in the "Accounts" box. Both the "Category" and "Accounts" boxes are set to "Select All". Thanks again.

You might also want to check in the account Customization that you have:

Select All for the Payees and Tags tabs
On the Advanced tab include "All" Amounts, Tax-related transactions only is checked, "All Transactions" is selected for Transaction types, "Include all" Transfers is selected and all the Status boxes are checked.