Planning Tab, Tax Center View: Tax-Related Expenses YTD showing 2020 Taxes

Philip107

I'm looking at the Planning Tab and the Tax Center View. I have the Tax Planner set for the current 2021 tax year. In the Tax-Related Expenses YTD Summary it is showing 2020, 4th Quarter Estimated payments for Federal and State that were made in January 2021.

 I get that they were made in this year, 2021, but they don't relate to the 2021 tax year. They are from last year's taxes. Why would I want to see them listed here mixed in with other Tax Year 2021 related expenses?

markus1957

The highlighted categories likely have the wrong tax lines associated with them. Assign the estimated tax lines to the categories and they will report as expected.

Philip107

I've always had these assigned. They are reporting as expected in the Tax Planner but not on that view.

UKR

If you make payments in 2021 that should apply to tax year 2020, change the transaction date to 12/31/2020.

Rocket J Squirrel

I think you're expecting too much from this widget. It truly is showing tax-related expenses paid year to date. It is not trying to determine the tax year to which payments apply.

Another wrinkle is that state income tax may be (I used to say "is") deductible from federal income tax in the year it was actually paid. If you paid TY2020 state estimated taxes in 2021, that could be deductible on 2021 federal income tax.

Chris_QPW

My view on the tax planner is it is good for a "ballpark estimate", it isn't by any means a substitute for an actual tax program.  When I want to make actual tax predictions like for paying my estimated taxes, I use my tax program.

I was burnt a long time ago by the limitations of the tax planner, and frankly my not understanding its limitations, and as such changed my way of thinking about it.  And the same for the Lifetime Planner.

Rocket J Squirrel

This is unrelated to the Tax Planner.

Chris_QPW

Oops.  Sorry.  I was following @Philip107's other thread and got confused.

Philip107

UKR said:

If you make payments in 2021 that should apply to tax year 2020, change the transaction date to 12/31/2020.

I guess this will work, it's just the 2 transactions for now.  I started doing estimated payments last year which is why this Tax Planner is getting more of my attention.  It really is a widget that I wish Quicken also gave more attention too. It alone is worth the price of Quicken.