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I do not understand what an amount is on line 62 c (code: UT) of my return. It is causing possible issues. Also I do not know where the number came from on line 71.

 
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1 Reply
rjs
Level 15
Level 15

I do not understand what an amount is on line 62 c (code: UT) of my return. It is causing possible issues. Also I do not know where the number came from on line 71.

UT on Form 1040 line 62c indicates uncollected Social Security or Medicare tax on tips. It comes from an entry in box 12 of your W-2 with code A or B. Make sure that you did not confuse the box numbers 12a or 12b on the W-2 with the code for the amount in those boxes. A lot of W-2s divide box 12 into boxes 12a, 12b, 12c, etc. But each entry in those boxes has a one- or two-letter code and an amount. Codes A and B are fairly unusual, and they are never used if you did not get tips. If the amount on line 62 is correct, what issue is it causing?

An amount on Form 1040 line 71 indicates that you had more than the maximum amount of Social Security tax withheld because you had two or more employers. Each employer withholds Social Security tax up to the maximum amount per person, as if it was your only employer. If the total withheld by all your employers is more than the maximum per person, the excess is credited towards your income tax. That's what the amount on line 71 is. On a  joint return, the excess Social Security is calculated separately for each person. If you are filing as married filing jointly, go back to the W-2 info screen in the section of the interview where you entered your W-2s. That screen lists all the W-2s that you entered. Look very carefully at the name shown next to each employer and make sure that each W-2 was entered for the correct person - either you or your spouse. If a W-2 was entered for the wrong person, the amount on 1040 line 71 is not correct, and you will get an IRS notice telling you that you have to pay it back, with interest and penalties. This is a common error, and people get very upset when they get a big bill from the IRS. If a W-2 is listed for the wrong person, you can change it by clicking the Edit button for that W-2.

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