Tax Reporting Line - Advance Child Tax Credit

OnlineDestruction

When entering a New Category, what Tax Reporting line did everyone use the for Advance Child Tax Credit?
Also received a credit for overpaying taxes on unemployment. I am not sure what Tax Reporting Line I need to use for that one as well.

Any recommendations or thoughts?

Mark1104

let me ask you this....if you get a tax return when filing your taxes, where did you post THAT credit. I'd use the same thing for the Advance Child Tax Credit - because it has the same effect.... you are simply receiving part of the tax refund you normally receive in March / April .

for the overpaying taxes on unemployment refund, it's really the same thing as my question above.  I'd 'trick' Quicken and tell Quicken it was received on 12/31/20 so that it doesn't comingle with 2021 tax reporting. 

Alternatively, I might set up a new EXPENSE (I know not intuitive) category called 'federal tax credit' and for the tax category assign it to '1040 estimated tax payments",  this is the opposite of a estimated tax payment.  But again, find a way to separate your two examples as the Unemployment Refund relates to 2020 and the advance child tax credit relates to 2021

NotACPA

I've got categories for both current taxes withheld (with his and hers sub-cats, tied to tax lines) AND a category for Prior Year Taxes (with Fed and State sub-cats) which are NOT tied to any tax lines because the income tax in my state is trivial, so I deduct Sales Taxes Paid instead.

OnlineDestruction

I just ended up creating a category as "IRS Income" and then sub-categorized the Payments as "Stimulus", "Advance Child Tax Credit" and "Unemployment Tax Overpayment Refund". All without the date just in case it happens again in the future. I will just have tie the transaction date to the timeframe and use the memo for year it affects.

Thanks for the quick help!

BK

OnlineDestruction said:

... I will just have tie the transaction date to the timeframe and use the memo for year it affects.

I use the TAG field for that purpose, such as TY2020 for tax year 2020 and so on which can help run a custom report and filter by a specific Tag value.