register entry for Social Security income

Split entry, with one line for total (gross) SS payment - with appropriate category such as Social Security:Retirement - then second line with a minus entry representing Medicare premium, with a category such as Insurance:Medicare B. The adjusted total will be the net SS payment deposited to your account.

Jay .

Thanks Jay. I have done it that way for a long time, but in a report, the number that shows up under "Social Security" is the gross amount. I always have to manually add up the net amount when I do my taxes. I would like to have the report just show the net amount after Medicare tax is deducted, without my having to bother to manually add it up.

Hi, Nemo.

Jay is correct.

You need both the gross amount and the Medicare premium totals for your income tax return and for financial reports, and they will both be available if you use the split transaction.

Remember, there is a real difference between "income" and "cash received". The net amount is your cash received, but the gross amount is your Social Security Income - and the deduction is your Medicare Part B Premium Expense.

No. Your cash receipts may be correct, but your SS income is understated by the amount of the Medicare premium deducted.

Your income report should look like your split transaction:

Income: Social Security Benefits Received $10,000

Expenses: Medicare Premiums Paid 1,000 _____

Net Income $9,000 ==== (I don't know how the newsgroup formatting is going to handle that, but this is the correct accounting treatment.)

RC

Thanks to all. I hope TTax has recorded this correctly through the years, but I always enter the amounts in the SS 1099 form.

nemo