My wife does not pay into social security because she is a teacher in Nevada. How does turbotax account for this?

[cmosier513]

Turbotax appears to be counting my wife's social security contributions against us, however she is not required to pay social security tax as she is not enrolled in social security. She works as a public school teacher in the state of Nevada.

[maglib]

when you entered the w-2 was there a 0 in the FICA income section?  If yes, did you input it into TT correctly?

[cmosier513]

Box 3 and 4 are both blank. However, our tax liability estimate seemed to jump very high as soon as I finished entering her w-2 info, which made me suspect TT is expecting a number greater than 0 in box 4.

[maglib]

So you input 0 in box 3 and 4.  Box 2 should have federal taxes withheld.   There is no calculation for additional social security taxes.....  Turbotax handles this fine.  Possibly your income moved you up to a higher tax bracket subjecting you to limitations on deductions or AMT?

[cmosier513]

Thanks, I think that's the answer. Since her income was entered after mine, it pushed a large portion of our income into a higher tax bracket. Thanks!