Can I ignore that TurboTax says on my W-2 that I overpaid in Social Security by $1?

[Ron9]

This is for the same employer which happens to be me.  I own my own business.  It is true that TurboTax says I overpaid because of rounding errors.  With a total gross salary of $61,877.40, Turbotax calculated at 6.2% a Social Security of $3836.40 or $3836 rounded to the dollar.  My payroll is done on a weekly basis.  So each gross wage per week is $61,877.40/52=$1,189.95.  If you figure 6.2% at this weekly rate, the amount that is taken out per week for Social Security is $73.78.  At the end of the year when W-2's are calculated, the amount of Social Security is $73.78 x 52 weeks = $3,836.56 or $3,837 rounded to the dollar.  As you can see it is $1 more than the calculation made for the total gross wage by Turbotax.  As the employer, when I make my withholding payments to the IRS on a quarterly basis on Form 941, there is a "quarterly fraction of cents" adjustment that can be made to adjust for these rounding errors.  It is usually not more than a penny or two.  But the IRS expects and allows for this penny fraction adjustments.

So yes, looking at the total wages at a whole, I overpaid by $1 or if we want to look at cents, I overpaid by 16 cents because of rounding errors.  This is way too much trouble to do W-2 corrections for only a 16 cent difference.  Can I just ignore this $1 (or this rounding error) since even the IRS knows there is going to be fraction of cents adjustments?  Also, error must be new because I have been using Turbotax for years and it never came up before and the wage has been the same for a couple years.

[AnthonyC]

You likely won't be able to ignore it completely as TurboTax will throw it up as an error and likely prevent you from filing.  However, you can adjust the Box 4 amount from your W2 by the one dollar and you should be able to proceed from there.

See TurboTax guidance for a single employer situation -

"You can correct the Box 4 amount yourself before filing. Simply multiply the amount in Box 3 by a factor of 0.062 and enter that amount or 7,960.80 (whichever is less) in Box 4."

https://ttlc.intuit.com/replies/3300261

[davbow]

Same issue here for my 2019 return. 

[LindaB1993]

You may adjust the Box 4 amount from your W-2 by the one dollar and you should be able to proceed with efiling.

See TurboTax guidance for a single employer situation -

You can correct the Box 4 amount yourself before filing since it is due to rounding up.

[Spearsonsr]

Good afternoon

[Spearsonsr]

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