My wife has a federal job and they opted into the federal tax "holiday" from Sep1-Dec31 2020. As a result, the federal taxes owed are a lot higher than what was paid, resulting in us owing a lot to federal on our return. She got notice that they will be increasing her federal contribution for all paychecks in 2021 to pay back the deferred amount from the holiday. How do I account for this when doing our return in TurboTax? I think TurboTax notified me that she should be getting a W2c form, will that have corrected values for the federal tax withheld? Or am I going to be forced to pay the federal taxes this year and get a very large return next year?
