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Exporting Information for US Income Tax to TaxCut or TurboTax RRS feed

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  • Exporting Information for US Income Tax to TaxCut or TurboTax

    (I have not really tested this on Sunset yet, but I did modify the method to navigate into the screens used for this process)

    It's Income tax season in the US again. There are various things that a user of Microsoft Money should consider.

    Microsoft Money is very good at producing the information for schedule D, if you have been downloading or entering your Buys and Sells. That is really nice. TaxCut and TurboTax are the only two income tax programs that use this data directly AFAIK. If you do not have that many sells, you can copy the data from Money's tax reports by hand into cheaper tax programs, such as TaxAct.

    While Microsoft Money can produce entries for other things like dividends, interest, W-2, etc, few people keep the data perfectly. Some of the items recorded as dividends may be return of capital or other special cases. Since you will be sent 1099s and perhaps 1098s for these, it will usually be best IMO to use the 1099 data where it is provided.

    Preparing the Schedule D is one of the best thing the Money program does for me. Both TaxCut and TurboTax can import the TXF (Tax eXportFiles) files that Money produces.

    If I were preparing a schedule C, the data that Money can send to the tax program would be very useful. You do not get 1099s for that information, for the most part. But I don't do that now. If you itemize, the schedule A information should be useful.

     There can be other things that Money can track and provide the information for your tax return

    So how do I proceed? In Money 2006, 2006, 2007 and Plus (non-Sunset), click Taxes->TaxTools->ExportToTaxSoftware

    Using Money Plus Sunset, a similar method can be used. First, configure in the TaxEstimator icon by clicking "Shortcuts..." near the top of your Money window.

    TaxEstimator->TaxTools->ExportToTaxSoftware

     Set the ReviewTaxesFor drop-down to Completed2010TaxYear. Continue.

    Select the items that you want Money to send to the tax program, and de-select those things that you will instead pull off of the 1099s. This may be Schedule A, Schedule C, and both long- and short-term capital gains, depending on your needs.

    In Money 2005, 2006, 2007 and Plus, if you want to print a tax report for yourself or your tax preparer, do not click Continue at this point. Instead click File->Print to print the selected tax information. This may be in two sections: the forms, line numbers and amounts for most of the selected items, and then the information for Schedule D.

     To pass information to TaxCut or TurboTax that are installed on your computer, click Continue. This writeup is not written with the use of the on-line tax software in mind. If you plan to use online tax software, read elsewhere about that.

    I recommend that you not use the options for TaxCut or TurboTax, but instead choose UseTaxSoftware, and "Export your tax information as a data file you can use with any tax software program". This will produce a .txf file. I suggest you do not use the FileByHand, UseTurboTax, or UseACPA choices in Money 2005, 2006, 2007 or Plus. Start your tax program. Make a copy of your tax file under another name. Then File->Import the .txf file. If you see that you selected the wrong information for export/import go back to Money and re-select the items. Then go back to the copy of the tax program that you had not imported into yet, save another copy of that and File->Import the revised .txf file.

     

    Wednesday, March 16, 2011 6:13 PM
    Moderator

All replies

  • Cal,

    Just wanted to let you know that your write-up is applicable to Sunset Money and 2012 taxes done with H&R Block At Home software as well. 

    One thing they’ve changed since TaxCut is the direct import of Money data into the program. Now you have to create a txf file in Money and import that file instead, but in actuality, I like the extra steps as it gives you more control over which data actually gets transferred. Be aware though that when you’re creating the file in Money, you will have to use the option “Any tax software”, rather than “TaxCut”, as Cal stated...

    <quote>I recommend that you not use the options for TaxCut or TurboTax, but instead choose UseTaxSoftware, and "Export your tax information as a data file you can use with any tax software program". </quote>

    Dan



    • Edited by ameridan Saturday, January 14, 2012 6:50 PM
    Saturday, January 14, 2012 6:08 PM
  • I just started trying out generating my US 2011 schedule D with the *.TXF file from Money. It is not going to be so easy if your broker does not know your basis on some sales-- usually due to having the shares for a long. I don't have my 1099Bs yet, but there is a new procedure for 2011. There is a form  8949. http://www.irs.gov/instructions/i1040sd/ch02.html#d0e1193

     have fed my *.TXF file into TurboTax, and I get a "Imported Broker Transactions Worksheet" that I will be trying to figure out how to deal with. It has a secondary slide bar that switches to each transaction in the *.txf file. Data is filled in, but there are check boxes to categorize things and to document a different basis from what the broker reported for each transaction. Then TurboTax will generate the forms.

    There is some addition to the TXF protocol that should feed some added info to Turbotax to simplify the processing. A TXF processor program in Python could maybe add the info. http://turbotax.intuit.com/txf/TXF042.jsp has the new protocol described to some extent. That would not  be used by the tax filer, but rather it is info that could be useful to somebody trying to write a converter. After a bit of experimenting, the need for this is looking less likely, which is good.

    So I expect to write more. Further looking at this shows it will not be difficult to process. There will just be an extra step.

    Tuesday, January 31, 2012 11:27 PM
    Moderator
  • I have written a Python script that can take a TXF file from Money, and adjust the appropriate new taxref code in the TXF file to save the user for ticking a button in Turbotax for each sale of a security bought before the cutoff date. It is not a real timesaver for most, but it could be useful.

    Anyway, if anybody wants me to post a copy of that for somebody to play with, let me know. Until I actually see a new 1099B, I am not going to know how it all fits together.

    Thursday, February 2, 2012 2:51 AM
    Moderator
  • Unless H&R Block will be making changes in an upcoming rev, I'm not seeing any of this using their At Home software.  My Schedule D has already been generated for Citigroup shares that were given to wife years ago with DRIP reinvested dividends that we cashed in (almost worthless + no broker involved).   I'll keep your offer in mind, but their worksheet instead used the option "no statement received from broker" to avoid all that work.
    Thursday, February 2, 2012 4:13 PM
  • Thanks for the info on that. DRIP shares are a special case, and are treated differently. Here is a quote from http://www.irs.gov/instructions/i1040sd/ch02.html :

    Form 1099-B.   If the property you sold was a covered security, its basis should be shown in box 3 of the Form 1099-B (or substitute statement) you received from your broker. Generally, a covered security is a security other than:

    • A security you acquired before January 1, 2011,

    • Stock in a mutual fund or other regulated investment company, or

    • Stock you acquired through a dividend reinvestment plan.

     

      If box 6 on Form 1099-B is checked, the property sold was not a covered security.

     

      Enter the basis shown on Form 1099-B in column (f). If the basis shown on Form 1099-B is not correct, see How To Complete Form 8949, Columns (b) and (g), later, for the adjustment you must make.

     

      If no basis is shown on Form 1099-B (or substitute statement), enter the correct basis of the property in column (f).


    Thursday, February 2, 2012 4:22 PM
    Moderator
  • Thanks Cal.  I haven't got my 1099B yet - if I do and it differs from my Money file, I'll just delete the Money data (Schedule D, Copy 1) and use the 1099B data instead.   Also, thanks for the Python scrubber script addition you posted  elsewhere to address "&" in the security name.
    Thursday, February 2, 2012 4:37 PM