How would I account for the medicare premium deduction from my Soc. Sec. check?

MrJeff · February 2023

Social Security automatically deducts the medicare part B premium from my monthly check. I record the remaining balance as a deposit but is there a way to account for the premium deduction so that when I run a tax report at the end of the year, the deducted amounts show up?

Jim_Harman · February 2023

Yes. Record the deposit as a split transaction - One split is your gross social security income with a tax line item of Form 1040:Social Security Income, Self or Spouse as appropriate, and the Medicare deductions entered as negative numbers with their own Categories.

MrJeff · February 2023

Thanks for the reply but I don't seem to be able to do this. Can you walk me through it? (Using, for example, $1,000 for gross soc. sec. income and $100 for the Medicare deduction) What do I enter in the deposit column? Then in the split transaction dialog, what figure do I enter for the social security deposit?

volvogirl · February 2023

Enter $900 for the net deposit.

1,000 is still the gross Social Security
and 100 to medical expense.

Ps56k2 · February 2023

Here is a test example - along with extra entries for possible IRMAA charges - if your AGI is above certain limits.
A couple of other SS points with Quicken - your SS deposit comes out each month on the same day of the month based upon your last name. You could therefore setup a manual Quicken Reminder to create the deposit entry shown below.
For tax reporting - you need to use a Category with the associated Tax Line Item -
if not already existing - create a new one.

Image: https://us.v-cdn.net/6031128/uploads/editor/eb/4auc1tj3acov.jpg

MrJeff · February 2023

Thanks, everyone!

q_lurker · February 2023

The FAQ on this topic:
https://community.quicken.com/discussion/7863666/faq-how-to-record-social-security-income-customize-day-of-month-for-schedule#latest

TTSguy · February 2023

How then do you run a report for net total deposits for the year then? My wife will want to see that.

q_lurker · February 2023

TTSguy said:

How then do you run a report for net total deposits for the year then? My wife will want to see that.

Banking transaction report customized to “Social Security Administration” or however you have that payer identified. You might do that as a listing all deposits (income) subtotaled by Payee or something similar.

Jim_Harman · February 2023

TTSguy said:

How then do you run a report for net total deposits for the year then? My wife will want to see that.

Also to help keep the Social Security deposits separate, I have separate Reminders using different Payees for my deposit and my spouse's.

How would I account for the medicare premium deduction from my Soc. Sec. check?

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