Tax planner / pension tax withholding confusion

EmKay · September 13

I'm having the same problem as @AllanDB in his question here:

https://community.quicken.com/discussion/7952092/tax-planner-incorrectly-showing-withholding-for-pension-income

The response to him was to call support, and it was suggested that the Paycheck function shouldn't be used for pension income.

@Quicken Kristina - your response to Allan said, "Due to the nature of this issue…" What's different about this issue from any other issue discussed here in the community?

And - if we're not to use the Paycheck function for pensions - what SHOULD we use to automate that income?

[Edit - Enabled Link]

Jim_Harman · September 13

You can use an Income Reminder with splits to cover the gross income and any deductions. The deductions should be entered as negative numbers, so that the net amount is the amount deposited.

Quicken does not have built in Categories for pension income or deductions but you can create them, using appropriate tax line items.

EmKay · September 13

@Jim_Harman - any idea why the Paycheck function can't work for pensions? With the exception of the Tax Planner not handling it correctly, I've been using it that way for 4 years now and everything else works fine.

NotACPA · September 13

https://community.quicken.com/discussion/comment/20509353#Comment_20509353

A Q "Paycheck" is, in reality, merely a split transaction with a fancy front end. For Pensions, Social Security and the like it can easily be replicated with split transactions.

That said, there is a recurring (not all the time) flaw in the Paycheck "fancy front end". that it sometimes screws up transactions.

Tax planner / pension tax withholding confusion

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