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Federal tax deduction software error

While I don't not have a question, this mesaage is posted for awareness. I filed 2025 Federal and State taxes on Feb 11th 2026. After waiting for a federal refund I received notice from the IRS that I owned Federal Tax. I contacted the IRS and learned the Turbo Tax software did NOT calculate my part time income correctly. I spoke with a Turbo Tax expert and they agreed the software did not calculate the taxes due on social security income correctly. The software stated Zero taxes (0) taxes however it should have been taxed at 85%. The turbo tax expert and I walked through my return and and they acknowledged the error. They stated IT would be notified. I am not sure if they plan to follow-up with me or not, but I wanted to make others aware.   

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3 Replies

Federal tax deduction software error

USER ERROR WITH SOCIAL SECURITY ENTRY

We have seen a lot of people who made a user error with the entry of their SSA1099.   The screen right after you enter the SSA1099 asks you if you lived in certain foreign countries in 2025.   If you skipped past that screen or answered incorrectly, your Social Security was not taxed correctly.   Look at your Form 1040 and see if line 6b was left blank due to that mistake.  The IRS is catching those mistakes and correcting them by reducing your refund or increasing your tax due.   It is really so important to read every screen slowly and carefully from top to bottom as you prepare your tax return to avoid errors.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Federal tax deduction software error

You missed this screen.   It is not  glitch or error and there’s nothing to fix.   

 

SS Foreign.PNG

Federal tax deduction software error

Thank you for the response. I cannot seem to view the screen you are referring to, but it would have been helpful if the software had alerted me of an unanswered question.  

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