Quicken - Tax summary

ok... here's another little gem

I want to verify the Interest and Divs for our Joint filing, and also for our son's Individual filing from his summer jobs.

All portfolio accounts are in a single Quicken file - maybe that's our problem :)

SO - I wanted to see the Tax stuff... Menu bar -> Reports -> Tax -> Tax Summary ->

sub-total by Tax Schedule BUT - all the "interest" or all the "divs" are rolled into a single grouping. Would be really helpful to be able to group by the account.

oh well - just revert to the paper 1099's and manual enter it - at least it will be correct

Reply to
P.Schuman
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Quicken is supposed to HELP you to organize your finances, not DO it for you. All the reports would be only useful if you set the categories straight and be consistent throughout the reported period.

Just downloading transactions from bank, credit card and the broker would not yield any useful report. Only after EACH transaction to be reported is set, the report could be accurate. Quicken offers some tools to make the job easier and quicker, but you - the USER - need to get involved.

Reply to
gk

you're kidding right ? I don't even know where to begin to reply to this line of thinking... A financial program that defines the transaction types, and downloads them from participating institutions and then on the back end can't bring the basic information together in a meaningful manner without my manipulating the already tagged data into manual categories ???

That's just nuts -

Reply to
P.Schuman

"P.Schuman" wrote in news:tCsqj.9494$ snipped-for-privacy@newssvr29.news.prodigy.net:

You're correct that the tax schedule report isn't useful for comparing your quicken data to individual 1099s. I agree they could have put in a subtotal by payee so you don't have to use a category report. You see the same problem with charitable contributions being totaled together. You can customize the report to include only a single account though and do it that way, thoguh it is a bit of work.

scott s. .

Reply to
scott s.

You could copy the report to excel and manually get the totals by account.

Alternatively, run the report by account.

Since the official numbers are those found on the 1099s it would be better to use those. I know mine are close but Q does not provide the breakdown into the various boxes found on the 1099.

Reply to
Laura

I forgot to say that some of the interest income shown on the Tax Summary report might not be reportable interest. For example, the interest in my IRA account is included on that report but is not taxable income to me. So this is another reason to use the 1099 instead of the totals from Q.

Reply to
Laura

thanks for the feedback -

In all my years, I've never used Quicken data Imported into TurboTax, but thought I would try it this year because of a lot of account activity. Guess I'll ignore that train of thought.

It's just mind boggling that a "financial accounting" software program can't properly "account" for the specific transactions it creates along with the specific transactions downloaded from the financial institutions.

Seems like the financial institutions are partly to blame for not creating a very specific file transaction, and then again - maybe it's back to Quicken for not demanding a complete transaction.

Reply to
P.Schuman

I think your expectations of Quicken are too high. It is not a financial accounting software. It is a giant check book register that you control how you want transactions classified. If you misclassify the category or transaction that is not the fault of the program but the user. Garbage in Garbage out.

The financial instutions have no idea how I spend my money nor do I want them to. I would not want a third party to determine which Staples transactions are for personal vs business use. Even multiple categories can be assigned to the same Payee. Again, my bank has not idea how I want to track my expenses. I think you are expecting way too much from this program.

Reply to
Laura

There is a standard - but each FI interprets that standard. Quicken just processes the data and does not determine if it is being applied correctly. This is why you review the transactions when they are received and reconcile periodically.

As for importing information. I gave up on that years ago because it was to cumbersome to fix the data on the tax side. It might be okay if you have simple returns - but I don't. So I run CATEGORY reports and use that information to trigger me in the tax return and reconcile the official tax documents before I file. Takes me a lot less time.

Reply to
Oilcan

Let me go one step further. IMNSHO, there is virtually NEVER a reason to use Quicken vs. a 1099 ! The 1099 figures are what the IRS receives; in 99% (and only because I'm leaving myself an out) they could give a Rat's a*s what Quicken sez on an import!

I always find it amusing to try to understand what people are thinking trying to export Quicken data to Turbotax without ensuring what ends up is simply what is easily obtainable (and needs to be used) on a 1099. And even if Q differs from the 1099, what do you expect to do about it???

(In fact, movement is now afoot to have FIs calculate AND REPORT cost basis to the IRS for 1099-B reportable sales. Yet another reason to not trust Quicken, although there are more than one way to calculate cost basis that is indeed legit and probably doesn't match reported 1099-B cost basis figures if this ever comes to pass.)

I'm listening to see if I'm mistaken - all suggestive comments welcomed!

Reply to
Andrew

"And even if Q differs from the 1099, what do you expect to do about it???"

In all my cases over the years, I made a mistake in my entry in Quicken. I fix Quicken. If my 1099 was wrong (I have yet to find one), I would use the Quicken number only if I was sure that it was correct.

Oilcan

Reply to
Oilcan

Q also does not give you the same level of detail the 1099 shows. My interest is broken down into taxable, non taxable, foreign sources and a few other categories. I don't think we have any other choice but to use the 1099 form as that is the official number reported to the IRS.

Reply to
Laura

"Oilcan" wrote in news:ZyEqj.7468$ snipped-for-privacy@newssvr13.news.prodigy.net:

Until about a week ago I was using Q05, which won't import into TT07. So I thought I would try using the .txf method instead. I haven't done that for many years. I found that it worked just as well as import did in the past. Now I'm kind of wondering what the advantage of import is. At one time import was an all-or-nothing thing and you could spend more time cleaning up after it than you saved in entering the data, but now when it shows you everything it could import before it does and lets you deselect what you don't want it is a bit easier.

scott s. .

Reply to
scott s.

"Oilcan" wrote in news:1COqj.7451$ snipped-for-privacy@nlpi069.nbdc.sbc.com:

I have a case this year of a 1099 which includes income I received in 2008. I normally use the 1099 as a QA against my Quicken data first, since I want that to be correct before I try to do a tax return.

scott s. .

Reply to
scott s.

By the way, I should have made it clear that I try to keep all my records within Q as accurately as possible, and indeed run a tax schedule report and try to ensure that it matches the 1099s as well since I dutifully enter all my interest and dividends manually or automatically throughout the year. I just don't take that step in having Q do all the exports - takes me more time to then verify that then simply entering the data manually. (Although I supposed if I were completing a complicated Sch D for a lot of mutual fund reinvestment transactions if I reported a capital gain that way, I might be tempted!)

But the one statement that I wonder about is the amount of 'luck' you'd have with the IRS since if you report a different number than the 1099, that's almost a guarantee you'll hear from them one way or the other. That's got to be the easiest thing they can find, since it's all simply computer matching.

I would thing it would be easier for you to convince your FI to reissue a corrected 1099 and use that? Else, I guess you can take your chances, or perhaps append a note to your 1040 'explaining' the difference up front.

I'd love to hear some stories on how well that worked out for anyone!

Reply to
Andrew

Hi, Andrew - and others.

Having been on the preparing side of a lot of 1099s (NONE in the paste couple of decades, though), I can assure you that they are just as vulnerable to error - by humans and computers - as any other forms that have to be produced.

Today's highly-computerized systems used by almost all banks, public corporations, mutual funds, employers, royalty payers, etc., have reduced most reporting errors to near-zero. But we often see Amended 1099s issued by stockbrokers, even months after a year-end.

The cover letter on the "2007 Consolidated 1099 Statement" that I just received from a stockbroker is marked "Figures Are Final". A paragraph in the letter explains: "Please Note: The information we received from the issuers of your investments was marked FINAL. However, in the past, some mutual funds, REITs, UITs and corporations (domestic and foreign) have reclassified the tax treatment of income after it was reported to us as final. If that occurs this year, we will send you a revised 1099 tax statement marked 'Figures Are Final'"

As we discussed at length here recently, there are often significant accounting issues that cannot be resolved by year-end, or even by the time financial statements and tax reports must be issued several weeks later. It is not unusual for the accounting treatment of some transactions - even major ones - to be changed "after further review" (like Instant Replay in the Super Bowl).

But we can rely on 1099s we receive from public companies almost 100% of the time, and we probably would never be penalized for that even if those forms were found to be incorrect. We might have to pay more (or less) tax (and interest) based on a corrected 1099, but not a penalty, since we relied on the official form furnished to us.

Small companies and individuals also must issue 1099s, W-2s and other forms reporting interest, wages, non-employee compensation and other payments they've made during the year. These forms are issued by company accountants and bookkeepers, often using manual systems, and are just as subject to error as they always have been. I know. As I said above, I've been involved in preparation of a lot of those.

Even when the reporting form is properly prepared, there can be a reason why the recipient should report a different number. For example, a dividend check mailed on December 31, 2006, won't likely be received by the shareholder until 2007. The corporation's 1099 will properly show that dividend as having been paid in 2006, but the shareholder should include it in 2007 income, not 2006. Most shareholders will simply use the 1099 numbers for 2006 and 2007, and the IRS is not likely to challenge them. But the shareholders really should show the proper amounts on their returns. Probably the best (least likely to trigger an audit) way to do this would be to report the numbers from the 1099s for each year, then show a subtraction on the 2006 return and an addition on 2007 for that end-of-year dividend, with a short explanation.

A tactic used by some closely-held corporations is based on the end-of-year rules. A corporation's controlling shareholder, maybe the president, might be entitled to a whopping bonus at Christmas or year-end. The corporation, following its usual practice, will mail the check to the president, maybe on December 31. The W-2 will have to report it as salary paid in the earlier year, but if the president can avoid the "constructive receipt doctrine" rules ("all you had to do was reach out your hand and take the check") and show that the check was not available to him until January, then the bonus can be taxed in the following year. This will at least defer the tax payment for a year and perhaps get it taxed at a lower rate, too.

Note that in both those year-end situations (dividend and bonus), the shareholder's and employee's Quicken numbers might disagree with the 1099s. And BOTH Quicken and the 1099 are correct. They can be reconciled, but they differ, quite properly, because of timing.

Yes, 1099's are ALMOST always correct. But, as Ronald Reagan said: Trust, but verify!

RC

Reply to
R. C. White

"R. C. White" wrote in news: snipped-for-privacy@corp.supernews.com:

RC, that's exactly the situation I have this year with one payer. I called them and the response was "we checked with our accounting department and this is how we do it for everyone". I was concerned because this income is subject to a state gross receipts tax, and it was already after the due date for December tax payments. But I still find the process of reconciling my 1099s against Quicken to be a good drill. The bigger problem for me doesn't involve Quicken, but rather accounting for qualified dividends and US Govt obligations interest/dividends for funds.

scott s. .

Reply to
scott s.

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