Perhaps I have not made myself clear on this one:
- I have already had the maximum social security tax withheld by my current employer
- My former employer from whom I have a group life policy sent me a W2 with Box 12 Letter Code M indicating that there is about $44 of uncollected social security tax. I do understand that collecting social security tax on this imputed income is legitimate.
- However, the TurboTax product is adding this uncollected social security tax on to my tax obligation. Essentially, I will be paying $44 more than the maximum social security tax the way that TurboTax is handling this.
- Everything I have read indicates that in 2020 the maximum social security tax is $8,537.40 - the same amount my current employer has already withheld. TurboTax will have me paying $8581.40 by adding this $44 rather than recognizing that I am already at the maximum.
- How do I know this? I went into TurboTax and zero'd out the amount in Box 12 Letter Code M on my former employer's W2 and my refund increased by this $44 amount.
