nav[aria-label="Primary Navigation"] { padding: 0; & ul { list-style: none; width: 100%; display: flex; flex-direction: row; justify-content: start; align-items: start; gap: 30px; padding: 0; & li { margin: 0; } & ul li { list-style: none; } } }

Schedule C not including all business income

ValerieK

My Schedule C is incomplete. It is not including two income categories that are set up as business income, with the tax line "Schedule C: Gross receipts." The deposits in question are all royalty income, and they came via check with taxes deducted. I entered them in Quicken as a split transaction, categorizing the gross amount using the appropriate business income category, and itemizing the taxes that were deducted. Despite my Schedule C being set to include these specific business categories and bank account, they do not show in the Schedule C.

Royalty income needs to be on my Schedule C (per my accountant). How do I get it there?

Find more posts tagged with

Business

Accepted answers

All comments

Sherlock

If you haven't already, I suggest you verify the tax line assignment on the entry: open the split transaction, select the entry, and Edit > Tax line item assignments

If tax line assignment is present on the entry and the report doesn't include the entry, I suggest you review the report's filters: open the report and press Alt + C

Note: Do not trust the options claiming to include all accounts, any category, payee, tag, etc.

ValerieK

Thanks for the feedback. The tax line assignment is correct, and there is nothing on the report to filter it out. I even deleted the report and had Quicken recreate it, since it's one of the standard ones that comes with the Business edition. Same problem.

I think the problem is that on my split transaction, there is one line with a business income category (Schedule C tax assignment) and then multiple lines with W-2 tax assignment. I tested this theory by entering a dummy transaction with just the business income category and that shows up fine in the Sch C. But when I created another test transaction with a split of one line with the business income category and one with a w-2 tax category, that transaction did not appear on the Schedule C. But Quicken should be looking at individual transaction lines, no? Why would one transaction line "overrule" another? Any ideas?

Sherlock

ValerieK said:

Thanks for the feedback. The tax line assignment is correct, and there is nothing on the report to filter it out. I even deleted the report and had Quicken recreate it, since it's one of the standard ones that comes with the Business edition. Same problem.

I think the problem is that on my split transaction, there is one line with a business income category (Schedule C tax assignment) and then multiple lines with W-2 tax assignment. I tested this theory by entering a dummy transaction with just the business income category and that shows up fine in the Sch C. But when I created another test transaction with a split of one line with the business income category and one with a w-2 tax category, that transaction did not appear on the Schedule C. But Quicken should be looking at individual transaction lines, no? Why would one transaction line "overrule" another? Any ideas?

I'm not able to reproduce the issue using W-2:Federal tax withheld, self. Which W-2 category did you use?

Jim_Harman

There was a recently fixed issue with split transactions in the Schedule B report, perhaps that same issue is still affecting the Schedule C report. See this Idea.
https://community.quicken.com/discussion/7853844/fix-schedule-b-report-so-it-handles-split-transactions-that-include-dividends-correctly

The (unpleasant) workaround was to enter multiple transactions rather than the split.

ValerieK

I'm using Version R37.66, Build 27.1.37.66. What are you using?
Yes I did use W-2:Federal tax withheld, self. I tried W-2:State tax withheld too. Same thing.

I guess I could enter the net amount of each check, but then all my withholding taxes will be wrong.
And if I enter it as two transactions; one for the net and one for all the withheld taxes, I will be out of sync with my bank. And I have quite a few of these transactions. Ugh.

Sherlock

ValerieK said:

I'm using Version R37.66, Build 27.1.37.66. What are you using?
Yes I did use W-2:Federal tax withheld, self. I tried W-2:State tax withheld too. Same thing.

I guess I could enter the net amount of each check, but then all my withholding taxes will be wrong.
And if I enter it as two transactions; one for the net and one for all the withheld taxes, I will be out of sync with my bank. And I have quite a few of these transactions. Ugh.

I'm still using R36.38.

Jim_Harman

If necessary, enter a deposit for the gross and a withdrawal for the withholding. The 2 transactions in your register will match the net transaction downloaded from the bank. It's messy.

But @Sherlock says he did not see this problem. Unfortunately I do not have H&B so I don't have a Schedule C report to try it.

Jim_Harman

Try entering the splits in the other order. Does it work differently? If so, that sounds like the problem with the Schedule B report.

Sherlock

Jim_Harman said:

If necessary, enter a deposit for the gross and a withdrawal for the withholding. The 2 transactions in your register will match the net transaction downloaded from the bank. It's messy.

But @Sherlock says he did not see this problem. Unfortunately I do not have H&B so I don't have a Schedule C report to try it.

@Jim_Harman You do not need H&B to have Schedule C appear in the Tax Schedule report. Just assign the Schedule C tax line items to the split entry and the entries should appear on the Tax reports.

Jim_Harman

@ValerieK, which report are you running?

I ran the Tax Schedule report with business income and W-2 withholding and it works fine for me.

Image: https://us.v-cdn.net/6031128/uploads/editor/du/9w567jiw65oa.jpg

Sherlock

Jim_Harman said:

Try entering the splits in the other order. Does it work differently? If so, that sounds like the problem with the Schedule B report.

The order of the entries didn't have any impact when I tried to reproduce the issue.

Jim_Harman

The issue that was fixed earlier was with the Schedule B report. I am assuming (maybe incorrectly) that there is a Schedule C report that comes with H&B and that may be where she is seeing the problem.

ValerieK

Changing the order of the splits didn't make any difference.
But I see you and I are running different reports! You're running what looks like the Tax Summary in my version. And that does show the royalty income, as a separate category. But for whatever reason, Quicken won't include it on the Schedule C report. I guess I will ignore that report and use the Tax Summary instead. Thank you for the feedback - much appreciated!

ValerieK

PS - I figured it out. After running the report you suggested Jim, and seeing the royalty income as a separate category, I re-ran the Schedule C. At the bottom of the report, after all the expenses, it lists the royalty income, as a separate Gross Receipts category. Not sure why it breaks it out separately, or lists one Gross Receipts category at the top and one at the bottom, but at least it is in there. Thanks again to you and Sherlock for your help.