Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

[JimBo16]

I have been getting the same W-2c notification. I am retired and get a W-2 from former employer for imputed income for a life insurance policy. There are no Social Security and Medicare taxes withheld. I have boxes 12 on the W-2 checked for DD, C, M, N.... M & N are the SS taxes not paid which turbotax correctly put on Schedule 1 and line 23 of the 1040 last year (and schedule 2 this year) as uncollected taxes and therefore they are paid with the filing. But turbo tax this year says I will get a W-2c since I "deferred" them last year which is not correct. 

[raysim52]

I am using TurboTax online and during the Federal review I got the same message concerning the W-2c. This is a software issue with TurboTax. I am surprised that it wasn't corrected. When I reported it to TurboTax support last year, they advised me to ignore it and that it wouldn't affect my filing.

I reported this issue today to TurboTax and told them I was surprised this issue hasn't been address since last year!

I am also retired and get a W-2 from former employer for imputed income.

If you haven't, I recommend reporting it to TurboTax support. Maybe they will fix it.

[DianeW777]

You did not defer anything.  Your employer was allowed to defer this tax last year.

Check the amounts in box 3 of your W-2 and the amount in box 4.  Box 4 should be 6.2% of Box 3. 

Review the IRS Notice 2020-65 which explains more about this topic. This does not affect your tax return, only your social security account. For most employees no action is required.

To Employers: 

If you deferred the employee portion of Social Security tax under Notice 2020-65, when reporting total Social Security wages paid to an employee on Form W-2, Wage and Tax Statement, include any wages for which you deferred withholding and payment of employee Social Security tax in box 3 (Social security wages) and/or box 7 (Social security tips). However, do not include in box 4 (Social security tax withheld) any amount of deferred employee Social Security tax that has not been withheld.

To Employees:

If you had only one employer during 2020 and your Form W-2c, Corrected Wages and Tax Statement, for 2020 (if you get one later), only shows a correction to box 4 (or to box 14 for employees who pay RRTA tax) to account for employee Social Security (or Tier 1 RRTA tax) that was deferred in 2020 and withheld in 2021 pursuant to Notice 2020-65, no further steps are required. 

@raysim52

[JimBo16]

DianeW777

There is nothing in boxes 4 or 6 for SS or Medicare tax withheld on the W-2. They are  in boxes 12 c&d. As I stated, this is imputed income and I am responsible for paying the taxes. I have have received this W2 for 8 years now since I have been retired and I can assure you that am not going to get a W2-c from my employer. Nobody has deferred anything. I am just pointing out that TurboTax is generating a W2-c notification incorrectly. 

[raysim52]

JimBo16

You have to wonder if these people identifying themselves as Tax experts even take the time to read the post and their replies prior to them posting themselves. There are many of them it his community. 

[BH Myers]

Turbo Tax still has this error showing up on our tax form for 2021!! Totally frustrated by the lack of support that Turbo Tax has for their errors and in finding out how to resolve it on our return. Anyone have an idea about how to either reach Turbo Tax or enter something that will add Fed withholding to our return?

[BH Myers]

Not so. 2021 is showing this same alert and our return is almost identical to last year and this message never popped up

[BH Myers]

How do you report something like this to Turbo Tax and get help in correcting the situation. I've used Turbo Tax for 7 years now and this is the only complication I've had, but am totally frustrated about how to resolve the issue and complete our return.

[raysim52]

Call [phone number removed] then press 1 for TurboTax. 

[RobertB4444]

You are probably better off having someone walk through the return with you to look at your entries so I recommend getting live expert help.

Here is a link to finding a TurboTax expert.

However, that requires upgrading your product which may be an expense you don't want.  In that case you can call an expert and ask questions over the phone.

Here is a link to the TurboTax Phone Number.

[PersonalTaxes1932]

Thanks for posting your info.  I am preparing my mom's taxes and never before has she had to pay Federal Taxes.  Her SS income is being divided into taxable and non-taxable; also, we've never seen this before.  Why now?  Why would she have to pay taxes on CA Social Security?  Anyone know?  Is this a glitch in TurboTax?  Thanks all for your help. 

[DoninGA]

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@PersonalTaxes1932 wrote:

Thanks for posting your info.  I am preparing my mom's taxes and never before has she had to pay Federal Taxes.  Her SS income is being divided into taxable and non-taxable; also, we've never seen this before.  Why now?  Why would she have to pay taxes on CA Social Security?  Anyone know?  Is this a glitch in TurboTax?  Thanks all for your help. 

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Please disregard the W-2C message in TurboTax.  It is left over from last year and the programmers never removed the message.

[BuggerBoy]

Thanks.

I can definitely ignore the message, but wouldn't it be better if TT would FIX the problem?

Neither my employer nor me differed any taxes, social security or otherwise.

[Dave7547]

I am in the same boat.  No SS tax was deferred by me or my employer.  I hope Turbotax takes a look at this.

[raysim52]

I reported this issue to TurboTax while I was filing my 2020 taxes last year and they advised me to ignore the message. When I reported the issue to them this year, I even told them I was surprised this issue wasn't fixed, again I was advise to ignore the message.