My pension benefit is direct deposited to my checking account.
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garypegg
Member ✭
My pension benefit is direct deposited to my checking account. How should this "net" income be categorized? Is it possible to add the gross income amount (which would be categorized as "income"?) and the state and federal income tax deductions (expenses?) in the split transaction?
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Best Answer
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Forget the paycheck wizard. Just create a transaction with the Net amount showing as the amount deposited and then SPLIT the transaction to show the GROSS amount as a positive number (with the income category that you choose) and then the deductions as NEGATIVE numbers (each with the appropriate tax category).Lastly Memorize the transaction and then Schedule it to happen on whatever day of the month.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP6
Answers
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We have setup a Split entry Reminder using the PAYCHECK wizard ... - teacher -
just ignore some of the "payroll" text. I was introduced to it here on the forum...I actually went back and re-entered a years worth of monthly deposits to get insight into what to expect on the 1099 that would show the - Gross - FED - Net -
QWin - R54.16 - Win10
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Forget the paycheck wizard. Just create a transaction with the Net amount showing as the amount deposited and then SPLIT the transaction to show the GROSS amount as a positive number (with the income category that you choose) and then the deductions as NEGATIVE numbers (each with the appropriate tax category).Lastly Memorize the transaction and then Schedule it to happen on whatever day of the month.
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP6 -
Agree with @NotACPA's approach - a simple three line split fits nicely.
You will have to create categories for the gross pension payment and for the state and the fed withholding. The tax line assignments for these pension categories are under the Form 1099-R group.QWin & QMac (Deluxe) Subscription
Quicken user since 19910 -
Is there an issue with using the Paycheck Wizard for a split Pension income as described above? I've been inputting my pension as a Split Paycheck this year (my first with pension), but may not understand the consequences in planning.0
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There isn't an issue using the Paycheck Wizard to set a reminder for pension income. Some simply find it easier to enter the appropriate transaction in the register and use the transaction to generate the reminder.TedHtttt said:Is there an issue with using the Paycheck Wizard for a split Pension income as described above? I've been inputting my pension as a Split Paycheck this year (my first with pension), but may not understand the consequences in planning.0
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