I received a letter from the IRS the other day (almost 4 months after I filed) that says “The forms W-2 you submitted are insufficient to support the amount you claimed for excess SS and Tier 1 RRTA tax withheld on your 1040. Send us all W-2 to support your claim for excess SST/RRTA. I don’t ever remember imputing anything like this on Turbo Tax. When I look at my 1040, it does show on Schedule 3, Line 10 “Excess SS and Tier 1 RRTA Tax Withheld” in the amount of 2. Anyone know what this letter means? I’m confused and have done my taxes the same way every year. My wife did change jobs last year. Would this have anything to do with it? How big of a deal is this? Any help would be greatly appreciated.
Are you married and filed Joint? And you both had 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.
For 2020 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 $8,537.40. 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 $8,537.40
Or check W2 box 12. You may have entered Code A by mistake.
Or post back with the amounts in boxes 3&4 on each W2 for each spouse.
When I look at my 1040, it does show on Schedule 3, Line 10 “Excess SS and Tier 1 RRTA Tax Withheld” in the amount of 2.
The excess Social Security on Schedule 3 line 10 is only $2? For that amount, I wouldn't spend any more time on this than absolutely necessary. Reply to the IRS letter with copies of all your W-2s (send copies, not originals) and tell them you agree that there is no excess. Send your reply by certified mail with a return receipt.