locked
Federal/State Tax Returns RRS feed

  • Question

  • How do you recommend categorizing federal and state tax returns?
    Sunday, March 3, 2013 2:55 PM

All replies

  • I presume you mean federal and state tax refunds.

    There is more than one correct way. If you use the default categories in Money Plus, you will have categories of Taxes:FederalIncomeTaxes and Taxes:StateIncomeTaxes. Those are Expense categories.

    I would use those same categories for refunds. Expect a warning that you are using an Expense category for Income.

    If this does not appeal to you, you can make your own categories.

    Sunday, March 3, 2013 4:58 PM
    Moderator
  • Thanks Cal!
    Monday, March 4, 2013 2:14 PM
  • Personally, I prefer Federal Tax Refund and State Tax Refund as subcategories under Other Income, so that you can use the Income Tax Categories for your Tax Estimator and Tax Reports.  If I end up paying more when filing my taxes rather than getting a refund, I enter a negative amount in the Refund category.
    Monday, March 4, 2013 4:34 PM
  • That would suggest that you don't enter income tax payments, from withholding or quarterlies, paid during the year.
    Monday, March 4, 2013 4:40 PM
    Moderator