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From: jaygreg on 19 Apr 2010 01:12
I’ve underpaid my taxes throughout the year and paid the balance with
the return; no W2’s involved all 1099R, 1099-INT, and 1099-DIV’s. I’m
using Q2008HB and TT2009. What’s the proper tax line to use? I can’t
find anything other than entries for “withholding”. I’m looking for a
category that reflects taxes paid “after the fact”.
From: Jerry Boyle on 19 Apr 2010 09:58
You can use category "Fed Tax Paid" in Quicken. You don't enter this item
into TT although the amount should agree with the value computed by TT on
Line 75 (Amount you owe).

If you file Form 1040-V with your tax payment then this amount goes on that
form. As far as I know, TT doesn't deal with Form 1040-V.

Jerry

"jaygreg" <jaygreg90(a)hotmail.com> wrote in message
news:a03fe72f-78a5-4cf3-a22d-8e5e87d603d1(a)e7g2000yqf.googlegroups.com...
I�ve underpaid my taxes throughout the year and paid the balance with
the return; no W2�s involved all 1099R, 1099-INT, and 1099-DIV�s. I�m
using Q2008HB and TT2009. What�s the proper tax line to use? I can�t
find anything other than entries for �withholding�. I�m looking for a
category that reflects taxes paid �after the fact�.

From: R. C. White on 19 Apr 2010 10:11
Hi, Jay.

> using Q2008HB and TT2009. What�s the proper tax line to use?

The proper line to use FOR WHAT?

Were any taxes withheld on those 1099 forms? If so, how did you enter the
1099 information in TT2009? Or in Quicken?

All federal income taxes withheld on Forms W-2 and 1099 should appear on
line 61 of Form 1040. How the total amount gets to that line depends on how
you've entered data in the TurboTax screens. Did you enter the withholding
yourself, or let the Financial Institutions download the information, along
with the interest and dividend income amounts. Did you enter or download
the data into Quicken, or directly into TurboTax?

Right under line 61 is line 62, "2009 estimated tax payments and amount
applied from 2009 return". This number also can be entered directly,
although it usually is carried forward from other input forms.

In any case, the proper treatment is usually to enter the amounts on, or
have them automatically flow through, the Tax Payments Worksheet. This
worksheet has sections to enter and accumulate Estimated Tax Payments, Tax
Payments Other Than Withholding, and Taxes Withheld.

> category that reflects taxes paid �after the fact�.

There is no such entry on the Form 1040; there's only line 75, "Amount you
owe".

In Quicken Deluxe, we must "work around" the system to get the proper tax
amounts recorded in the proper tax years. I've never used Quicken H&B, so I
don't know if it has a better method for this.

In Deluxe, I depart from the strict "cash method of accounting" and use
accrual entries to record federal income taxes for each year. The tax
balance paid on April 15, 2010, is not for 2010, but that's how it appears
using the strict cash basis. And, since there were probably some
prepayments - whether by withholding from wages or dividends or by estimated
tax payments - and quite often a refund due, the April balance does not
reflect the actual tax amount for ANY year.

So I make a "non-cash" entry dated December 31 each year. I can't make this
entry until I've completed my Form 1040 at some time in the following year,
but I date it at year-end. My entry can be made in any Quicken Account; I
usually use my "FIT Prepaid" account, which is where all my withholding and
estimated tax payments are accumulated. As of 12/31/09, this account showed
the total withholding for 2009 before my year-end entry. (If I made a
1/15/10 estimated tax payment on 2009 taxes, I would need to mentally add
that payment to the 12/31/09 balance in calculating my year-end entry. And
if I owe a penalty for underpayment of estimated taxes, that penalty expense
must be included in the year-end entry, too, of course.) Once my return is
done, I use those final numbers to record my actual tax expense for 2009.

In most years, the final entry is simple: In my FIT Prepaid account, I
enter the amount of the actual tax - the amount on line 60, "Total Tax", of
Form 1040 - in my Federal Income Tax Expense category. (This is usually the
only entry in this Category for the whole year.) Once this is recorded, the
12/31/09 balance in FIT Prepaid should show the exact amount that I still
owe (line 75) or that I've overpaid (line 72) - after adjusting for that
1/15/10 payment, if applicable. By April 15.2010, I should have paid or
received the balance, either way, and the amount left in FIT Prepaid should
equal my withholding or prepayments (to date) on my 2010 tax.

RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc(a)grandecom.net
Microsoft Windows MVP
(Using Quicken Deluxe 2010 and Windows Live Mail in Win7 x64)

"jaygreg" <jaygreg90(a)hotmail.com> wrote in message
news:a03fe72f-78a5-4cf3-a22d-8e5e87d603d1(a)e7g2000yqf.googlegroups.com...
> I�ve underpaid my taxes throughout the year and paid the balance with
> the return; no W2�s involved all 1099R, 1099-INT, and 1099-DIV�s. I�m
> using Q2008HB and TT2009. What�s the proper tax line to use? I can�t
> find anything other than entries for �withholding�. I�m looking for a
> category that reflects taxes paid �after the fact�.

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