What tax categories should I use for SocSec payment withholding's?

What tax categories should I use for SocSec payment withholding's such as fwt, state tax, medicare, etc.? W-2 or Form 1040 or something else?

Best Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Accepted Answer
    Here is what I have done:
    1)  Set up custom categories for:
    • Income Category:  SS Benefit_Gross (self)...associated it with the tax line item with Form 1040: Social Security income, self.
    • Expense Category:  Health & Fitness:Insurance:Medicare Part B...associated it with tax line item Schedule A: Doctors, dentists, hospitals.
    • Expense Category:  Health & Fitness:Insurance:Medicare Part D...associated it with tax line item Schedule A: Doctors, dentists, hospitals.
    • Expense Category:  Tax:Federal:SS Income...associated it with tax line item Form 1040: Fed tax w/h, Soc. Sec., self.
    • I don't have any State income tax liability but if I did I would probably set up a custom Expense Category for it:  Tax:State:SS Income...associate it with tax line item Schedule A: State income taxes.
    2)  Set up an Income Reminder
    3)  Transaction total is for the Net SS Benefit amount.
    4)  Split the category:
    • Line 1:  SS Benefit_Gross (self)...entered the gross benefit amount (a positive number)
    • Line 2:  Health & Fitness:Insurance:Medicare Part B...entered the premium deduction amount (a negative number)
    • Line 3:  Health & Fitness:Insurance:Medicare Part D...entered the premium deduction amount (a negative number)
    • Line 4:  Tax:Federal:SS Income...entered the tax withheld amount (a negative number).
    • Line 5:  Tax:State:SS Income...entered the tax withheld amount (a negative number).
    • If done correctly, the total of all the category splits will equal the transaction total.
    Some comments:
    • Some people set up a Paycheck Reminder instead of an Income Reminder.  I have found that doing so will populate the Tax Planner tool and the Tax Schedule, Tax Summary and Schedule A reports incorrectly.  Setting it up as an Income Reminder will populate these correctly.
    • Form 1040: Social Security income, self:  The description of this tax form in Quicken states that this is the net SS benefit amount, not the gross SS benefit amount.  But Tax Planner and the Tax reports do correctly show them as the gross SS benefit amounts.
    • You can set up the Income Reminder to remind you a certain number of days prior to the due date or you can have it automatically entered into your checking account register.  Many people opt to have it automatically entered now that most people have the SSA deposit their monthly benefits each month like clockwork.
    Let me know if you have any questions.
    (QW Premier Subscription: R36.45 on Windows 10)
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    Accepted Answer
    For Medicare deduction it just goes under Schedule A Doctors, dentist & Hospitals.  It doesn't need to know it's from SS.  It's just like health ins premiums.  There probably isn't any tax line for State withholding.  Most states do not tax Social Security.  

    Did you find the SS income & withholding?  Under 1040 here,




Answers

  • Boatnmaniac
    Boatnmaniac SuperUser ✭✭✭✭
    Accepted Answer
    Here is what I have done:
    1)  Set up custom categories for:
    • Income Category:  SS Benefit_Gross (self)...associated it with the tax line item with Form 1040: Social Security income, self.
    • Expense Category:  Health & Fitness:Insurance:Medicare Part B...associated it with tax line item Schedule A: Doctors, dentists, hospitals.
    • Expense Category:  Health & Fitness:Insurance:Medicare Part D...associated it with tax line item Schedule A: Doctors, dentists, hospitals.
    • Expense Category:  Tax:Federal:SS Income...associated it with tax line item Form 1040: Fed tax w/h, Soc. Sec., self.
    • I don't have any State income tax liability but if I did I would probably set up a custom Expense Category for it:  Tax:State:SS Income...associate it with tax line item Schedule A: State income taxes.
    2)  Set up an Income Reminder
    3)  Transaction total is for the Net SS Benefit amount.
    4)  Split the category:
    • Line 1:  SS Benefit_Gross (self)...entered the gross benefit amount (a positive number)
    • Line 2:  Health & Fitness:Insurance:Medicare Part B...entered the premium deduction amount (a negative number)
    • Line 3:  Health & Fitness:Insurance:Medicare Part D...entered the premium deduction amount (a negative number)
    • Line 4:  Tax:Federal:SS Income...entered the tax withheld amount (a negative number).
    • Line 5:  Tax:State:SS Income...entered the tax withheld amount (a negative number).
    • If done correctly, the total of all the category splits will equal the transaction total.
    Some comments:
    • Some people set up a Paycheck Reminder instead of an Income Reminder.  I have found that doing so will populate the Tax Planner tool and the Tax Schedule, Tax Summary and Schedule A reports incorrectly.  Setting it up as an Income Reminder will populate these correctly.
    • Form 1040: Social Security income, self:  The description of this tax form in Quicken states that this is the net SS benefit amount, not the gross SS benefit amount.  But Tax Planner and the Tax reports do correctly show them as the gross SS benefit amounts.
    • You can set up the Income Reminder to remind you a certain number of days prior to the due date or you can have it automatically entered into your checking account register.  Many people opt to have it automatically entered now that most people have the SSA deposit their monthly benefits each month like clockwork.
    Let me know if you have any questions.
    (QW Premier Subscription: R36.45 on Windows 10)
  • thank you boatnmaniac. The use of the Form 1040 is what I was looking for. I will also try the Income suggestion you mentioned with negative withholding amounts in their respective categories..
  • volvogirl
    volvogirl SuperUser ✭✭✭✭
    Accepted Answer
    For Medicare deduction it just goes under Schedule A Doctors, dentist & Hospitals.  It doesn't need to know it's from SS.  It's just like health ins premiums.  There probably isn't any tax line for State withholding.  Most states do not tax Social Security.  

    Did you find the SS income & withholding?  Under 1040 here,




  • thank you volvogirl.