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Tax category for winnng money

I won $1,000 and would like to add the transaction into Quicken, but I don't know what tax category to assign it to so that the Tax Planning would be correct.

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Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Lucky you!  Per the IRS tax code, gambling/lottery winnings and other miscellaneous income must be reported on Form 1040 on the "Other Income" line. 
    In Quicken you should have an "Other Income" category that should be used for this purpose.  It has the appropriate tax line item association so it will populate Tax Planner and Tax Schedule and Tax Summary reports properly.  If you want to you can add a note in the memo field of the transaction identifying more specifically what the money came from.
    (QW Premier Subscription: R32.12 on Windows 10)
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    edited October 2020
    Hi @Bret.Hobbs,

    Unfortunately, you may not be able to have the lottery winnings go directly from Quicken into the correct tax line item in Turbo Tax, because Quicken isn't setup to cover every tax line item.  The income will be reported to you on an IRS Form W2-G (Certain Gambling Winnings).  In Quicken, I would suggest that you simply categorize it as "Other Income - Miscl."

    Let me know if you have any followups.

    Frankx


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  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Bret.Hobbs and @egauthier - FYI, W-2G tax form income data feeds into the Form 1040 Other Income line (this is the IRS tax code requirement).
    Quicken does not have a W-2G tax form that can be associated with a category but that really does not matter regarding Quicken's tax reports and Tax Planner provided you use the Other Inc category I suggested in my original reply.  The Other Inc category is linked to the Form 1040 Other Income line so it is captured properly in Quicken's tax reports and Tax Planner.
    (QW Premier Subscription: R32.12 on Windows 10)
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