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Social Security Payment recording query?

So the wife is going to start receiving her Social Security soon. I note that they state they ROUND DOWN to the nearest dollar after deducting the required medicare payment that is taken from her upcoming payments. So the bottom line deposit will not be simply the benefit received minus the medicare deduction.

I'm curious as to how people account for this. I am presuming I create a split using an INCOME CATEGORY for the Social Security, then a negative line to account for the deduction of the Medicare payment, but then how does/should one account for the 'round off' to the lower full dollar amount?

I am thinking of simply assigned a 'MISC EXPENSE' category for it, but that bothers me in the sense I never actually received the full payment to start with, and I wonder how that will ultimate relate to any reports of payments received from Social Security to match up with Q reports?

So how to people do this to match with reality? Just me being anal retentive again.

Reply to
Andrew
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I've been drawing SS for a few years now. Apparently, they always want the amount of the actual payment to be a whole number, so your total monthly benefit will be the actual deposit amount, plus the medicare part b premium. That's the way they do it - as you will be able to verify on the SS web site, since they do break down each monthly payment there.

For example, if the actual payment you receive each month is $1500, and the monthly part b premium is $148.50, then the total monthly benefit will be the sum of those two, or $1648.50. Multiplying that by 12 gives you your total annual SS benefit that will show up on tax form SSA-1099 each year. So the Quicken transaction can be exactly what you want it to be......a simple split transaction that subtracts the part b premium from the total monthly benefit amount ($1648.50 - $148.50 = $1500), with the $1500 showing as the deposit amount in the account register.

Reply to
Tom Pfeifer

Thank you Tom! When I get the first payment, indeed I'll check the website and see what they think the GROSS was and record as appropriate taking into account the Part B premium deduction. Appreciate the informative reply.

Reply to
Andrew

No problem, glad it helped!

Reply to
Tom Pfeifer

The year end statement from SS gives amounts for everything for taxes and medical.

KenW

Reply to
KenW

KenW wrote: No problem, glad it helped!

I'm looking forward to dealing with her first 1099-SSA next spring!

Reply to
Andrew

Andrew snipped-for-privacy@invalid.com wrote in news:skmh78$j2s$ snipped-for-privacy@gioia.aioe.org:

It's pretty simple. The form reports what was paid (after rounding) not what was awarded. One box for the total benefits paid, then another for the medicare deduction and one more for the net.

And for reasons that I am sure makes sense to someone, the form is SSA-

1099, not 1099-SSA. Go figure.
Reply to
Porter Smith

Makes perfect sense to me. The government is backwards. :-)

Thanks for the post.

Reply to
Andrew

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