How do you record Social Security Income and Federal Taxes Withheld

Tammy Van Buren

I have been trying to enter a memorized transaction (paycheck) for social security income and taxes withheld. The issue seems to be that there is no form SSA-1099 in the tax documents. I have the SS income reported on form 1040, and I have used form 1040 and then the line item as Fed Tax w/h Soc Sec. The income is showing in tax planner as Other Income - Taxable Social Security Benefits, but the tax withholding is not, showing in the "Other Withholding" line. I also have a pension recorded and using 1099R, the taxes withheld do show in Other Reporting. I have looked through the community and some say there is an extended category list, but I do not have that option.

Boatnmaniac

(Edit: Added some additional comments in italics.)

Regarding the Extended Category List:

I think you might be thinking of the Extended Tax Line Item List that was available on the Tax Reporting tab of the Edit Category popup. A while ago there was a new version that eliminated that option so now all of the tax line items are available for viewing without checking a box for that. Now when you go to the Tax Reporting tab you select which Tax Form is applicable and then select the applicable Tax Line Item. (To see the Edit Category popup go to Category List, right click on the category and then click on Edit.)

Regarding the monthly SSI transaction:

It is important that the categories being used in the split category transaction have the correct Tax Line Items associated with them. I have customized my categories as highlighted in yellow in the pictures shown below. The correct Tax Line Items to associate with each are enclosed in red line boxes. Note that they show the applicable Tax Form as well as the applicable Tax Line Item.

Whatever categories you are using, you need to make sure that you have these same Tax Line Items associated with them. (Note that in the 2nd picture below I have 2 different categories for SS Tax….one is for SS tax withheld from wages and the other is for income tax withheld from SSI.)

Note: If you have been using categories that have different Tax Line Items associated with them, I suggest not editing those categories to change the Tax Line Item. Instead create new categories for them and then associate them with the correct Tax Line Items. You can also go to Category List and click 1-2 times on the column header for Tax Line Item to sort the list so all of the categories with Tax Line Items are grouped at the top of the Category List. Then review the list to see which categories you have with these specific Tax Line Items. Then use those categories in your split category income transaction…or you can do as I did and create custom categories for them using these Tax Line Items.

And if you are having Medicare premiums deducted from your SSI benefit you can include them in the split category as well. Here are the customized categories I use for this:

When you are sure that you have the correct categories selected for the split category transaction you can then set up a recurring Income Reminder as follows:

REMINDER AMOUNT: The net amount of SSI to be deposited to the checking(?) account….a positive number.

SPLIT CATEGORY: The total of the splits must equal the deposit REMINDER AMOUNT.

1. LINE 1: The category you selected for the gross SSI benefit…a positive number.
2. LINE 2: The category you selected for the income tax withheld…a negative number.
3. LINE 3: Medicare Part B insurance premium (if applicable)…a negative number.
4. LINE 4: Medicare Part C insurance premium (if applicable)…a negative number.
5. LINE 5: Medicare Part D insurance premium (if applicable)…a negative number.

When done, the SSI and related expenses should be reflected properly in the Tax Reports (Tax Summary, Tax Schedule, Schedule A) and in Tax Planner.

Did this information help you resolve the issue you are seeing?