Tracking your Income Taxes
When setting up your Income on the My Income page, we give you the flexibility to split the way your Income comes in. The easiest way to handle Income is record the Net Amount in the amount field but if you are one of those users that want to keep track of taxes withheld or taxes paid, here are a few options:
- The first option is to enter the Net Amount in the top Amount box, then enter your Gross Amount in the first split box. In the 2nd input box and on, you’ll want to enter in negative amounts to simulate your taxes. This is essentially how it will look on your paycheck. Gross – Social Security – Federal, etc. The tricky part comes when selecting a category. With this method you’ll want to choose the same category for all split amounts so that when viewing your chart by category, you see the total net amount for the month and not your gross. You can then further categorize your taxes by turning on Tags from the Settings page and tagging the split items as their appropriate tax category.
- The second option which is mainly for Small Businesses is to enter your net amount in the first split box, and taxes in the text boxes thereafter. If you have a small business this works well since in real life you are adding the full gross amount to your Checking Account and then spending it when tax time comes. For personal users however, this method will not work since the total amounts whether negative or positive will not add up to the actual amount you received.
- And the third option is to utilize the “Deposit To Multiple Accounts” feature. This will allow you to specify the net amount for your Checking account and assign the category as expected. You’ll then want to create a special account just for your taxes as a placeholder to keep track of so that they do not effect your Checking Account balance when recorded. You can then assign the additional split text boxes their own category and the Tax Account allowing you to graph them separately when needed.