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Tracking Social Security Disability Income RRS feed

  • Question

  • Hi, all,

    Should this type of income be treated as a regular paycheck in Money 2004? The only deduction is for Medicare, but I did not use Money's paycheck wizard to set this up, so the deduction is not listed.


    Regards

    Sunday, February 26, 2017 8:05 AM

All replies

  • Under 'Bills' click 'New' and 'Paycheck'. Enter gross amount and then your deduction(s). This works for Money 2005 UK so i am assuming US 2004 is the same..

    Dr AS

    Sunday, February 26, 2017 10:18 AM
  • I saw that option, Dr AS, so then I should use that? Would there be any tax filing advantages if I include the Medicare deduction in Money?

    Regards

    Monday, February 27, 2017 12:24 AM
  • Re US taxes, the US versions of Money can generate a "Tax-related transactions" report and can export values in the .txf file format.  The reports are customizable so you can select which income and expense categories are included.  This is helpful when filing your taxes because you can print the report for manual entry into your federal Schedule A deductions or import the .txf file into tax preparation software such as TurboTax or H&R Block.

    In general, Medicare B and D payments are tax-deductible, but nothing about US taxes is simple so you need to fully understand your individual situation.

    Also, my experience with the H&R Block program is that the .txf import process works great for capital gains but doesn't always work as expected for income and deductions.  You need to carefully check the numbers after import.


    Bill Becker

    Monday, February 27, 2017 4:38 PM
  • I would add that not everybody uses Money the same. There is generally not a single right way.

    I would enter the SSA-1099 info into the tax program, or I would give that form to the tax preparer. As Bill Becker pointed out, Money is good for capital gains, but it may not be better for tax prep use than the W-2 and SSA-1099 and similar forms. It can be good to look for anomalies, so if you want to get Money to report the numbers, it may be worth your time. It may not be for others. And things change. It may be that medical expense go from not worth itemizing to worth itemizing as you get more medical expenses or less income.

    You can use a Split as a category, and in that case Money opens up a form that lets you use multiple categories on a single net amount. A paycheck is a special case of a split. http://littlegreengecko.com/MSMstuff/faq.html has some really good info on splits and paychecks.

    Monday, February 27, 2017 7:18 PM
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