Question

2017 return

Forum|Forum|6 years ago
August 13, 2019
3 replies
0 views

We received notice from IRS that we understated social security income on 1040A for 2017 and subsequently owed 7015 in taxes interest and penalties. Upon reviewing my worksheet from that year, I found that the correct amount ($42,777) had been entered in the SSA-1099 line. but it did not show up on line 14a on the 1040A return.

We have paid the taxes and interest ($5917) on time, but requested a first time penalty abatement ($1098) at the suggestion of one of your face to face advisors. The IRS did not accept our reasons that request. we are left to pay the penalty.

We are wondering what happened between the worksheet entry and the final 1040A whose glitch that was.

Thank you in advance for your assistance,

Ken and Mary Lamers

VolvoGirl

Employee

Is anything on line 14b? Could it have shown up on another line instead?

A

artistAuthor

There is nothing in line 14b

A

Anonymous

you can file an accuracy claim with TT. if they miscalculated, they say they will pay the penalties and interest.

https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-turbotax-100-accurate-calculation-guarantee-or-100-accurate-expert/00/26065

C

cangiojl3

Right now, do I owe $7015 in taxes interest and penalties? Was this a problem with the program not showing the $42,777 from the SSA-1099 line to line 14A on the 1040A return. How much is the penalty? Do I have to pay the penalty abatement $1098 and the $1855 owed on my taxes?

VolvoGirl

Employee

You have to pay what the IRS says unless you know something they are overlooking. No there was no problem with Turbo Tax. Did you enter the SSA-1099. It's not the "a" line but the "b" for the taxable amount. Did your SS show up on a different line so the IRS missed it?

Did you have any 1099R? A common thing they change is the taxable amount of any 1099R for pension, 401K or IRA distributions or conversions on 1040. And if you get Social Security and they increase some other income it will make more of your SS taxable.

C

cangiojl3

I had several 1099 I received, one was a 1099R from Air Products (Fidelity) for $17,174, one was a 1099R from my wife's pension for $30,011, another was a 1099R from Fidelity for $15,000 and a W2 for $109,074 which gave us a total of $172,120 on form 1040 line 7. The last was a 1099R for $27,000 which was on line 15a IRA distributions. Could this be causing some of the problems? When I add line 7 to 22I come out with the amount of $134,740. This was my total income for 2017.