Microsoft KB Archive/180999

Money 98: How Money Calculates Tax Worksheet Values

PSS ID Number: Q180999 Article last modified on 08-19-1998

WINDOWS:98

WINDOWS

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The information in this article applies to:

 == Microsoft Money 98 == 

= SUMMARY =

The Microsoft Money 98 Financial Suite contains a Tax Worksheet in Money Insider that allows you to estimate how much you may owe in taxes, based upon your withholding status and information you have entered in your Money data file.

Money uses the category concepts assigned to the categories in your data file to project your income and deductible expenses. If the year is not complete, Money estimates what the yearly values will be. This article further explains this process.

= MORE INFORMATION =

Most fields in the Tax Worksheet are calculated from categories assigned to one or more category concepts. There are some fields that Money does not calculate. Instead, you manually enter the value.

Often you use the Tax Worksheet in the middle of the year to plan for tax time. As a result, it is not sufficient to enter just the transactions that are in the file. Money must estimate what the value of each concept will be at the end of the year.

Estimating a Concept’s Yearly Value
Money uses the following method to estimate the yearly values for any given concept:


 * 1) If there is at least one future payment in the Bill Calendar for a category assigned to the category concept, Money adds the actual transactions for the given year and the future scheduled transactions. It then enters the value in the appropriate field.
 * 2) If there are no future payments in the Bill Calendar for a category assigned to the category concept, Money counts the number of whole months before the current date, calculates the total actual transactions for the given year, divides by the number of whole months and multiplies the value by 12. It then enters the value in the appropriate field.

Money uses the following category concepts for calculations in the Tax Worksheet:

Tab Field Concept ———————————————————————-

Income 1. Wages & Salary Salary Income 2. Interest & Dividends Interest & Dividends 3. Short-Term Gain Or Loss Short-Term Cap Gains 4. Long-Term Gain Or Loss Long-Term Cap Gains 5. State Or Local Tax Refund State/Local Tax Refund 6. Alimony Alimony Received 7. Unemployment Unemployment Income 8. Other Income Other Income Adjustments 1. Tax-Deferred (not calculated) Retirement Funds 2. Self-Employment Tax (not calculated) 3. Self-Employment Health (not calculated) Insurance 4. Alimony Paid Alimony Payments 5. Unreimbursed Moving (not calculated) Expenses 6. Other Adjustments (not calculated) Deductions 1. Medical & Dental Medical/Dental Expenses 2. Real Estate & Other Tax Real Estate Taxes State Tax Payments Other Tax Payments 3. Deductible Investment Deductible Interest Interest 4. Mortgage Interest Mortgage Interest 5. Charity - Cash Charitable Donations Contributions 6. Charity - Non-Cash (not calculated) 7. Casualty Theft Or Loss (not calculated) 8. Miscellaneous Deductions Non-Reimb. Job Exp. Analysis Estimated Taxes Withheld Federal Taxes

Reviewing the Concepts
To review the concepts your categories are assigned to, follow these steps:


 * 1) On the Tools menu, click Categories List.
 * 2) Click the drop-down arrow to the left of the View heading.
 * 3) In the drop-down menu, click “Categories, Subcategories, and Their Concepts”.
 * 4) Scroll through the Category List to see how your categories are assigned to Category Concepts.

Editing the Groups or Concepts
To edit the category concept assigned to a category, follow these steps:


 * 1) In the Category list, double-click the category.
 * 2) In the Concept box, select the appropriate concept from the drop-down list.
 * 3) Click Back.
 * 4) Repeat steps 1-2 for each category you want to edit.

Additional query words: w_money 6.0 woody

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========================================================= Keywords : kbdta mnyguide Version : WINDOWS:98 Platform : WINDOWS Issue type : kbinfo ============================================================================= Copyright Microsoft Corporation 1998.