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Social Security deposit setup

Philip107
Philip107 Member ✭✭✭
What's the best way to transact my Social security deposit so that the taxable portion shows up correctly in the Planner?

What I have now is the check divided between 3 categories, Social Security - Self, -Medicare B and -Medicare D, the difference is deposited to my checking.
The Social Security - Self category is assigned the 1040 tax line Social Security Income - Self but the gross amount is ending up there and should be just the taxable amount.
Hope I stated that clear enough to understand.
Quicken User since 1998

Best Answer

  • Philip107
    Philip107 Member ✭✭✭
    edited February 14 Accepted Answer
    I dug deeper into the Planner and assigning Medicare Premiums to Schedule A:Doctors, dentists, hospitals won't necessarily work to subtract them from the Social security gross amount. This tax category is handled in the Planner as Medical Expenses under Deductions. This will only count as a deduction if you are itemizing and don't take the Standard Deduction and you have qualified to take a Medical Deduction by having a huge amount of them. As such I will never have qualified medical expenses.

    • So, Medicare Premiums have to be subtracted from gross Social Security Benefits off the top manually as the Planner doesn't have a category to assign them to that will do this. Somehow the premiums have to be subtracted from the benefit before the benefit is allocated to it's tax category. In the Planner this is called Taxable Social Security Benefits.
    Never mind, I got off on the wrong foot here. Medicare Premiums are only tax deductible if you can count them as a qualified medical expense. They aren't supposed to be subtracted from the SSA benefit like I thought. There are other calculations to determine what the taxable portion of the SSA benefit is. TurboTax does it, not sure it the Quicken Tax Planner does.
    Quicken User since 1998

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited February 12
    Q doesn't have an automatic way of calculating the taxable portion of your SocSec.
    SO, you can either estimate it yourself, or just wait until your actually filie your taxes
    BUT, what's going to show on your 1099-SSA is the Total amount and any deductions (such as Voluntary tax withholding, any Part B premium deduction and any Part D deduction).  NOT any "taxable portion".
    The SSA doesn't know your Taxable portion either, until you file your return.
    BTW, I was looking at my 1099-SSA when I wrote this.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Philip107
    Philip107 Member ✭✭✭
    Yes, I see that.
    I was trying to figure out how to set up the checking deposit from SS. it's like I need 4 categories in the transaction:
    1.  Deposit amount into checking (SS taxable)
    2.  Gross SS amount
    3.  Medicare B
    4.  Medicare D


    Quicken User since 1998
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Actually, you need
    1. Gross Amount received (with a Form 1040 tax line, self) attached to the category
    2) Medicare B (a negative number)
    3) Medicare D (a negative number)
    The Deposit into your checking has no category ... it's simply the Sum of these 3 items.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
    AND.... if you are lucky enough --- Medicare IRMAA
    Quicken 2020 Deluxe - Subscription - Windows 10
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    edited February 12
    In my SSA deposit, I have a split line for IRMAA and a line for voluntary Fed tax w/h.

    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Philip107
    Philip107 Member ✭✭✭
    NotACPA said:
    Actually, you need
    1. Gross Amount received (with a Form 1040 tax line, self) attached to the category
    2) Medicare B (a negative number)
    3) Medicare D (a negative number)
    The Deposit into your checking has no category ... it's simply the Sum of these 3 items.
    That is exactly what I have now. But, the Gross amount from #1 is entered into the tax planner as the taxable SS income but this is the Gross. It should be the amount going into the checking which has no category. That's my dilemma. How to capture that amount going into checking as the taxable category.
    Quicken User since 1998
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    In the tax planner you need to include All 3 categories, because all three will be reported on your 1099-SSA and all 3 go into your tax return.
    The only "category" on the deposit itself is "-split-"
    Net deposit is NOT taxable, Gross and the deductions are.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Philip107
    Philip107 Member ✭✭✭
    OK. I didn't see where to include the Medicare payments in the Planner.
    Quicken User since 1998
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    What tax line item are you guys using for the medical deductions & IRMAA? I'm currently using Schedule A:Doctors, dentists, hospitals. Is there a better TLI for this?
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    I use that same tax line for all 3, Medicare, IRMAA B and IRMAA D.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Philip107
    Philip107 Member ✭✭✭
    What tax line item are you guys using for the medical deductions & IRMAA? I'm currently using Schedule A:Doctors, dentists, hospitals. Is there a better TLI for this?
    I'm also using that tax line for my Medicare costs but it's not visible where in the Tax Planner it is deducted from the gross SS income.
    In the Tax Planner the SS income is labeled:
    "Taxable Social Security Benefits " in the Other Income section. but, the amount that shows up is from the category assigned the gross amount received.


    Quicken User since 1998
  • Philip107
    Philip107 Member ✭✭✭
    edited February 14 Accepted Answer
    I dug deeper into the Planner and assigning Medicare Premiums to Schedule A:Doctors, dentists, hospitals won't necessarily work to subtract them from the Social security gross amount. This tax category is handled in the Planner as Medical Expenses under Deductions. This will only count as a deduction if you are itemizing and don't take the Standard Deduction and you have qualified to take a Medical Deduction by having a huge amount of them. As such I will never have qualified medical expenses.

    • So, Medicare Premiums have to be subtracted from gross Social Security Benefits off the top manually as the Planner doesn't have a category to assign them to that will do this. Somehow the premiums have to be subtracted from the benefit before the benefit is allocated to it's tax category. In the Planner this is called Taxable Social Security Benefits.
    Never mind, I got off on the wrong foot here. Medicare Premiums are only tax deductible if you can count them as a qualified medical expense. They aren't supposed to be subtracted from the SSA benefit like I thought. There are other calculations to determine what the taxable portion of the SSA benefit is. TurboTax does it, not sure it the Quicken Tax Planner does.
    Quicken User since 1998
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