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
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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
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Copyright Microsoft Corporation 1998.