Can't reconcile the TurboTax generated self employed income to the SSA reported social security wages for given tax year -- when the SS Wage Limit was not exceeded

Forum|Forum|3 years ago
February 1, 2023
1 reply
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The SSA is showing a lower amount of Social Security Wages than what TurboTax generated for my return. Net earnings for Social Security are your gross earnings from your trade or business, minus all of your allowable business deductions and depreciation. I am including the deduction for one-half of self-employment tax from SCHEDULE SE to arrive at Net Earnings. Even after making these reductions to Gross Revenue (Schedule C), the SSA is reporting a lower amount of Social Security Wages. What could be the difference that i am not accounting for?

TurboTax Online

JosephS1

Level 8

Not knowing the difference in the reported amounts you are referring to, it is possible the difference is the percentage of self-employment income subject to self-employment tax. You do reference Schedule SE in your query so the question would be does the amount of self-employment income as shown on Schedule C equate to what is shown on Schedule SE line 3? The difference could possibly be the percentage allocation of 92.35% of the self-employed income subject to self-employment tax. A difference between what the SSA is showing and what shows on Schedule C normally would be a difference of 7.65%.

@Mallard2

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Mallard2Author

Level 2

Thanks for the response. I ended up at the local Social Security Admin field office to pose the question and present the data. They could not provide a direct answer and instructed me to submit tax forms for each of the years in question (all generated via TurboTax) to the field office who would then submit to the SSA Payment Center to reconcile. After explaining the process time involved, I gave up and have resigned to accepting the lower SSA reported social security earnings on record.