Here is my situation:
For 2020 I made more than $137,700 in Social Security wages in my regular job. During 2020, that was the max taxable SS amount and my employer took the appropriate amount of taxes out.
For my small self-employment business I made $40,000, this is in addition to my regular job.
However, my IRS transcript shows that they applied SS taxes to my SE salary in an amount of about $4600. They just sent me a bill requesting $4,000 payment. I assume this was an error on their part? I don’t want to have to hire a CPA to sent a letter telling them they screwed up. Turbotax did not calculate this tax (it did figure out the medicare tax on SE salary).
Am I wrong?
This is the THIRD time the IRS has sent me requests for more money they did not deserve
If your SE income is reported on the Sch C properly and the SE tax was calculated correctly then call the number on the notice to ask what they are thinking is incorrect. Or mail back a response with supporting documents attached to explain why you think the IRS is incorrect.
When I look at my IRS transcript they list $0.00 for Social Security wages, clearly this was a data entry error on their part.
Did you mail in your return ? If so be aware that the IRS data entry clerks have an input error rate at about 25% so it could be just that simple ... call the number on the notice and see if that can get things corrected.