When you assign tax-related categories to your Quicken transactions, Quicken applies the correct IRS tax form line item and dollar amount and makes this information available in tax reports and calculation tools. You can use this information in Quicken to plan ahead.
You can use the preset categories provided by Quicken or create new categories to meet specific needs.
- How do I assign a tax line item to a category?
- How do I assign a category to a transaction?
You can assign a category to a transaction when you enter it in Quicken.
If you're unsure about which tax-related category you need for a given transaction, you can assign the Not Sure Business Expense Category to the transaction when you enter it in Quicken and then assign the correct category later.
- When are expense categories tax related?
Many personal expense categories aren't tax related. Some categories are tax related only for taxpayers who itemize their deductions, some apply only to small business owners and the self-employed, and so on. See your tax professional for more information.
If you're using Quicken to manage your small business, generally all your business expenses are tax related. Many of the Quicken default categories in Quicken Home & Business (both the U.S. and Canadian versions) are already set up with appropriate tax schedule assignments.
- What if I need additional tax-related categories?
As you're working in Quicken, you may discover that the standard categories don't quite cover all your transactions. If you need a category that Quicken doesn't provide, you can assign the appropriate tax form line item when you create a new category.
- How do I set tax attributes for an account?
Sometimes the type of account determines the tax consequences. For example, a sell transaction from an investment account usually leads to either a taxable capital gain or a deductible capital loss. Quicken can assign these transactions to Schedule D. However, a retirement account such as a 401(k), a 403(b), or an IRA is tax deferred and not quite so simple. When you create such a tax-deferred account, you can assign the appropriate tax form line items to the transfers into or out of it.