Correct tax category for pension federal tax withheld - self?

EmKay

There doesn't seem to be a correct tax category for non-RR, non-SS fed tax withheld on pension payments for ME.  There's a category for my spouse but only because his income is exclusively social security.  There is no "pension that's non-RR" fed tax withholding tax category, that I can see.

Any harm in categorizing this income as "W-2" income, then?

Rocket J Squirrel

Quicken doesn't have "self" and "spouse" designations for tax withheld from a pension. But it does have a tax line item you can use. If you don't have an appropriate category, create one and give it the TLI "1099-R:Pension federal tax withheld".

Not sure why you're talking about income; withheld taxes are not income.

Boatnmaniac

What I have done:

1. Set up a New Category in Category List for Income.  You can name it whatever you want...I named it "Pensions".
2. During the setup process go to the Tax Reporting tab > check the "Tax related category" box > select 1099-R:Total pension taxable dist. from the "Tax Line Item" drop-down list > Save.

If you have Fed tax withheld:

1. Set up a New Category in Category List for Expense.  You can name it whatever you want...I named it "Tax:Federal Withheld:Pensions".
2. During the setup process go to the Tax Reporting tab > check the "Tax related category" box > select 1099-R:Pension federal tax withheld from the "Tax Line Item" drop-down list > Save.

If you have no Fed tax withheld, then just enter a deposit transaction for the pension payment received using the new "Pensions" category.

If you do have Fed tax withheld:

1. Enter a deposit transaction for the net deposit amount (the after-tax amount).
2. Split the category and in line 1 of the split enter the new "Pension" category and the gross before-tax pension amount...as a positive dollar amount.
3. In line 2 of the split enter the "Tax:Federal Withheld:Pensions" category and the amount of the tax that was withheld...as a negative dollar amount.
4. The total of the split must equal the amount of the net deposit in #1.

Using this process your Tax Reports and Tax Planner should properly capture that data.

Let me know if you have any questions.

EmKay

I misspoke using the word "income."  I was associating the withholding to the income it was related to.

Should I create a NEW category for this type of tax withholding, so as not to change all past transactions that were W-2 withholdings?  (My current Tax:Fed category is, as it has been for years, set with a tax category of "W-2:Federal tax withheld, self."

Boatnmaniac

EmKay said:

I misspoke using the word "income."  I was associating the withholding to the income it was related to.

Should I create a NEW category for this type of tax withholding, so as not to change all past transactions that were W-2 withholdings?  (My current Tax:Fed category is, as it has been for years, set with a tax category of "W-2:Federal tax withheld, self."

If you want your Tax Reports and Tax Planner to capture and show the data accurately (historic, current and future) then, yes, you should create a new category as was mentioned above.  I'm a stickler for maintaining accuracy of historical, current and future data records so this is what I would recommend.

But if you don't use the Tax Reports and Tax Planner and don't care about retaining the accuracy of historical data then I don't think it really matters all that much and you can simply change the current tax line item assignment for the Tax:Fed category you are using.