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Adding income tax to posted deposit?

I receive a monthly check from an annuity account. The amount of the deposit shows up in my bank account but this does not show the gross about of the distribution, just the deposited amount, after taxes were paid. I have two questions here:
1. The withhold is exactly 25% so I tried grossing up the total and splitting the amount between the actual deposit and the tax withheld but this doesn't seem to work correctly. How should I modify the posted deposit or do I delete this and add a new one?
2. Same basic question for the future - I can schedule this to hit monthly once I know how to set it up properly. If I do this, will Quicken recognize this when it sees the monthly deposit hit my bank account?

Best Answer

Answers

  • Moskose
    Moskose Member ✭✭
    ...or will there be duplicate deposits?
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    #1  You can't just gross up the net deposit.  It won't be exactly 25%.  It is not 25% of the net amount.  You need to know the actual Gross amount to begin with.  You should be getting a statement of the total and deductions.  Maybe you can go online and log into your annuity account and get it. Is it the same every month?  You probably have a new statement each year showing the amounts.
  • jacobs
    jacobs SuperUser, Mac Beta Beta
    If the withholding is exactly 25% of gross, as @Moskose says, then the gross-up from net is Net ÷ 0.75.
    Quicken Mac Subscription • Quicken user since 1993
  • Moskose
    Moskose Member ✭✭
    Excellent and concise reply Jacobs! I was overthinking this but your example told me, very clearly, to indicate a split on the deposit, add 33% to the net deposit and code the net amount to income and the split function automatically had the correct tax amount waiting for me to assign it to taxes. - Thanks for the quick and very helpful response!
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