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vtax00
Level 1

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

It sounded like I was due additional stimulus credits because I made less in 2020 than in 2019.  However, I thought that the stimulus payments were not taxable...
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SamS1
Employee Tax Expert

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

TurboTax is calculating the amount Social security tax in box 4 based on wages reported in box 3.  The amount of Social Security tax should be 6.2% of the box 4 wage amount.  If your employer elected under the Cares Act to defer the Employee share of the Social Security taxes, then a W2C could be issued.  I would recommend reviewing your Box 3 and Box 4 amounts to determine if box 4 is 6.2% of box 3.  If its, then you can proceed through the warning.

 

 

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KathrynG3
Employee Tax Expert

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

You are correct. The stimulus payments are not taxable. If you have fully paid and reported Social Security and Medicare tax, you can disregard the W-2C alert. 

 

To review, follow these steps to complete the Recovery Rebate Credit:

  1. Go to the search box and enter stimulus. Click the Jump to link.
  2. Answer Yes.
  3. At the next screen, Let's double-check the amount you received, answer No to edit the first-round and second-round amounts.
  4. If no stimulus amount was received, enter 0. An amount must be entered in each box. When finished, click Continue.
vtax00
Level 1

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

Thank you.

JoannaB2
Employee Tax Expert

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

Some TurboTax customers are seeing the following warning message while reviewing their tax return: “Heads up! You have a W-2c coming. 

 

If you believe you received this message in error, you can continue to file your tax return. 

We expect this issue to be resolved by 2/26/2021. If you’d like to receive progress status updates, please sign up here

mrb1llz
Level 2

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

Has this been resolved?  Ignoring it is not the answer because the product loses credibility. 

SamS1
Employee Tax Expert

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

TurboTax is calculating the amount Social security tax in box 4 based on wages reported in box 3.  The amount of Social Security tax should be 6.2% of the box 4 wage amount.  If your employer elected under the Cares Act to defer the Employee share of the Social Security taxes, then a W2C could be issued.  I would recommend reviewing your Box 3 and Box 4 amounts to determine if box 4 is 6.2% of box 3.  If its, then you can proceed through the warning.

 

 

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vtax00
Level 1

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

Thank you. I believe this is the least vague response I have received.

mrb1llz
Level 2

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

All numbers and calculations are correct.  The message is an error, perhaps based on some rounding error in your program calculations.  Bottom line is that you should fix it not tell folks to ignore it.  !!!

mrb1llz
Level 2

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

Well, did TurboTax software engineers fix this yet?  There is no product credibility when something like this continues to exist.  Very disapointing!!!

CatinaT1
Employee Tax Expert

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

This is not an error.  If your employer elected under the Cares Act to defer the Employee share of the Social Security taxes, then a W2C could be issued.  This is warning you that you may receive a corrected W2 from your employer.

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mrb1llz
Level 2

How does turbotax know this: Heads up! You have a W-2c coming??? I got this message after it told me I would receive additional stimulus credits.

Yes this an error. The situation you referenced is not my case. I have one W-2 for imputed income for a group life policy. The amount in line 12 box m and n is for the social security and Medicare taxes due since they are not withheld. The percentage are correct and the amount properly carries over to the 1040. I have used TurboTax for years and had this type of W-2 but never an error until this year. Something is broken and should be fixed. Perhaps a phone call with a developer would be helpful.

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