I'm using QP2007. 2006 was the first year that I was required to pay estimated tax payments. So I created two subcategories to handle this:
Tax:MI1040-ES and Tax:US1040-ES and applied the appropriate tax line item assignments.
Last year I overpaid both state and US taxes by a few hundred dollars and at tax filing time, just had the overage applied to 2007, thereby reducing the size of my estimated tax payments for this year.
For my 2007 quarterly payments, I've set up each transaction using a split, whereby the full amount due is a positive amount, and the amt applied from 2006 is a negative amount. (Same categories for each split.) This, of course, means that although the transactions look fine, the tax reports are wrong, because they only show the amount actually paid in 2007 (reduced by the amount paid in 2006).
BTW, the feds applied my entire overage to my first payment, but the state broke it out over several payments, so my April payment for the state ended up being $0.
Any input on how I should handle this situation in Quicken so it's properly documented in my reports ... esp come tax time? I've looked through the category list and the corresponding tax line item assignments, but I can't find anything related to overpayment of estimated taxes, just underpayment.
TIA and Regards,
Margaret