Tax Refund/Payment

Need some assistance. How should I categorize a tax refund/payment after after completing an income tax? If i don't categorize properly it shows up on my report.

Thank you in advance

Best Answers

  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited January 31 Accepted Answer
    danlapin said:
    Thanks for responding Tom. What I'm trying to do is to categorize that it will not shows up in my tax summary. I'm not sure if i should create a sub category under tax as tax paid and tax refund and leave a tax line item blank. I hope i make sense. Any suggestions?
    You have it figured out.
    Yes, create subcategories for Tax Paid and for Tax Refund.
    Yes, leave the tax line assignments blank.

    These items will not display in the Tax Summary and Tax Schedule reports.

    Note: This applies for Federal Taxes - Paid & Refund.
    State taxes, paid or refund, are reportable and the categories are given the appropriate tax line assignment.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • judycakes
    judycakes Member
    Accepted Answer
    I created an Income category "Tax Refund" with Subcategory "Federal Refund" with no tax line item, and Subcategory "State Refund" with tax line item "1099-G state and local tax refunds"

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    I'm not sure what you're referring to by "If i don't categorize properly it shows up on my report."  Why wouldn't you want it to show up on a report?  (What report?)
    I assume your taxes withheld and/or estimated taxes show up on a Spending report of some sort, unless all you're picking up in the report is the net paycheck.  If that's the case then one way of handling this would be to simply enter the refund as a "negative" expense when you receive it.
    Maybe you can explain how you're currently accounting for the tax "outflow" and what report you're referring to?
  • danlapin
    danlapin Member ✭✭
    Thanks for responding Tom. What I'm trying to do is to categorize that it will not shows up in my tax summary. I'm not sure if i should create a sub category under tax as tax paid and tax refund and leave a tax line item blank. I hope i make sense. Any suggestions?
  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited January 31 Accepted Answer
    danlapin said:
    Thanks for responding Tom. What I'm trying to do is to categorize that it will not shows up in my tax summary. I'm not sure if i should create a sub category under tax as tax paid and tax refund and leave a tax line item blank. I hope i make sense. Any suggestions?
    You have it figured out.
    Yes, create subcategories for Tax Paid and for Tax Refund.
    Yes, leave the tax line assignments blank.

    These items will not display in the Tax Summary and Tax Schedule reports.

    Note: This applies for Federal Taxes - Paid & Refund.
    State taxes, paid or refund, are reportable and the categories are given the appropriate tax line assignment.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

  • danlapin
    danlapin Member ✭✭
    thank you
  • judycakes
    judycakes Member
    Accepted Answer
    I created an Income category "Tax Refund" with Subcategory "Federal Refund" with no tax line item, and Subcategory "State Refund" with tax line item "1099-G state and local tax refunds"
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    judycakes said:
    I created an Income category "Tax Refund" with Subcategory "Federal Refund" with no tax line item, and Subcategory "State Refund" with tax line item "1099-G state and local tax refunds"

    That's exactly how I handle this situation also.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
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