I have a cash account called 'Net Income Tax'. Every year I enter a
transaction on 12/31 that reduces or increases expense from the relevant
federal withholding categories. The resulting positive or negative balance
ends up in 'Net Income Tax'. When I make a deposit or payment to/from
checking for the tax refund/payment, I treat it as a transfer to that
account. That zeroes the balance of the account and keeps the tax
year-relevant expense transactions in the correct tax year.

The remaining detail is allocating the additional tax expense to either my
or my wife's FIT category. (We both get W-2s.) If we owe money, I attribute
it to 'Joint Income Taxes', a subcategory of Taxes. If we're owed a refund,
I allocate the expense reduction on a pro-rata basis to our separate tax
categories, using a split on the transaction that puts the excess in Net
Income Taxes.

I never trust *.txf exports completely. I always end up tweaking the W-2 to
match what my employer provides, anyway. I've never had an instance where an
export data error was not minor and mine. Even if I could prove it wasn't
mine, it would be very small (we're talking single-digit dollars here) and
not worth the hassle of revised W-2s, etc. If what you file matches what the
employer filed electronically, you'll save yourself a LOT of grief.
--
Chris Cowles
Gainesville, FL


"Brad Rosevear" <brosevear[at]kc.rr.com> wrote in message
news:I8kNd.3647$w75.258[at]twister.rdc-kc.rr.com...
- quote -

I use an account under taxes other taxes category called
Federal Income Tax-Previous year.
--
Jon Hildrum
DTS MVP
Jon_Hildrum[at]msn.com
www.hildrum.com
"Brad Rosevear" <brosevear[at]kc.rr.com> wrote in message
news:I8kNd.3647$w75.258[at]twister.rdc-kc.rr.com...
- quote -

Can anyone suggest the best way to categorize federal and state refunds
so that they are not considered taxable income when exported to a *.txf
file to be used in turbo tax?
Thank you,
B. L. Rosevear