Solved

IRS sent me a letter saying we owe them $2,111 in Excess Social security paid to us from our 2018 return.

Forum|Forum|5 years ago
September 25, 2020
2 replies
0 views

RS sent me a letter saying we owe them $2,111 in Excess Social security paid to us from our 2018 return. I reopened the 2018 return, and TurboTax still notifies that we are owed back excess Social Security. My wife has many employers, and from what I've read, that can cause more SS to be collected. Not sure what to do.

TurboTax Self Employed Online

Best answer by Critter-3

@VolvoGirl I think I figured it out. Her company issued her a W-2 in a non-standard format (It is from their HR software). The box is labeled 12A, which would make me think its a 12-Code-A. It's actually Box 12A-Code-DD.

A: Uncollected social security or RRTA tax on tips reported to your employer

DD: Cost of employer-sponsored health coverage

So, I think this is on me for not reading the form well enough, and them for using a non-standard home-made document.

Yes ... the W-2 box 12 has 4 parts ... 12a,b,c,d ... so this was a data entry error and the IRS is correct. Mystery solved.

w-2 code A.PNG

VolvoGirl

Employee

Did you also have W2s? The IRS is probably right. They usually are in this case. You assigned both spouse's W2 to the same person so it looked like that person went over the max. Or did she alone go over the max?

For 2018. Do you still have copies of all the W2s? Look at box 4. Did either of you have more than 1 employer? You only get excess SS back if one person had more than 1 employer and those employers took out more than the max of $7,960.80. So add up your W2 box 4. Is it more? Then add up your spouse's W2 box 4. Is their box 4 more than $7,960.80?

Or check W2 box 12. You may have entered Code A by mistake.

J

justthetaxpleaseAuthor

@VolvoGirl

Looking at the return, my wife has 7 W-2 in her name, and I had 1 in my name.

I'll check the box 4's.

J

justthetaxpleaseAuthor

To clarify, TurboTax states we overpaid SS in 2018.

We got a refund of the amount we overpaid.

Now, in 2020 we received a letter stating we owe that money back, plus interest.

Logging back into TurboTax for 2018, it still says we overpaid and are owed back the money.

VolvoGirl

Employee

Exactly. I answered for that. Did she go over the max? Add up all of her box 4. Or did it go over by adding your W2s and her W2s box 4 together? If one person's box 4 went over the max then send the IRS copies of all the W2s.

Critter-3

First download the amendment program .... then you can Look at the W-2 summary screen and the warning screen that comes up at the end of that section ... review whose W-2s were assigned to ... the program gave you this warning screen so the data entry error can be corrected before you file ...

excess ss 2018.PNG