Social Security deposit setup

Philip107

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.

Philip107

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.

NotACPA

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.

Philip107

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

NotACPA

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.

Ps56k2

AND.... if you are lucky enough --- Medicare IRMAA

NotACPA

In my SSA deposit, I have a split line for IRMAA and a line for voluntary Fed tax w/h.

Philip107

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.

NotACPA

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.

Philip107

OK. I didn't see where to include the Medicare payments in the Planner.

Rocket J Squirrel

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?

NotACPA

I use that same tax line for all 3, Medicare, IRMAA B and IRMAA D.

Philip107

Rocket J Squirrel said:

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.

Philip107

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.