Turbotax: "You have a W-2c coming. Since you deferred some of your Social Security taxes last year,..." Both my W-2's have maxed-out SS income/withholding, a problem?

[henrysil]

I don't recall any deferrals or communications from employers. Both W-2's for myself and spouse have maxed-out SS income and withholding at the 2020 cap. I did enter a small amount as "non-employee compensation" from a 1099-NEC. Could this be triggering Turbotax's message?

[markmil111]

I've got the same problem..Flagged me with same message, but i did NOT defer any of my SS taxes last year..so interested in the response...Employer took all required SS taxes.

[markmil111]

Update..You maybe onto something but i think a defect (as well)..ran across this post..

https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-form-1099-nec/L5fbwIFSn

I don't have a 1099 NEC either and max (137k) taken out appropriately on SS taxes..i've been OTP for about 40 min with Support (second level)..asking they confirm if a bug or what else maybe triggering it.

Mark

[markmil111]

Ok, so in my case, this got rid of it...Don't understand why, but the CS rep had me do it..

Go into Deductions..section of "tax relief related to covid" ..then go into self employment tax  then click NO (assuming applicable)..then do review again.

[henrysil]

I appreciate your help!

The Covid "Self-employment tax deferral" had a "Revisit" button (even though this was never asked nor offered).

I went in there and selected "No" to ask for a deferral, but it still gave me the W-2c message after the checks. It may be due to my (small) 1099-NEC, since the questions ask something about my "self-employment tax."

Turbotax does say that I can go ahead and file, and may need to amend if I get a W-2c later, which I'm pretty sure I won't.

[markmil111]

Yeah, you were onto something though as that NEC form is new for 2020 as it relates to the misc income...i'm similar in that i have a very small side biz (LLC) that normally goes into misc income...that also may have triggered it (although TT didn't generate that form), but since doing what i described, did away with it, doesn't make sense, but not worth anymore time trying to really figure it out...i'm low risk and will get the audit defender ..lol 

[robindholt]

I AM GETTING THE SAME MESSAGE - HAVE ONE W2 ENTERED - NO SELF EMPLOYMENT TAX TO ENTER.  TRIED THE FIX AND DID NOT WORK FOR ME.

[jmwink72]

Same problem here.  Just came up today for the first time.  Paid all 6.2% SS tax - doubled checked W2s and all are the correct 6.2%.  Do I just continue to file...I don't know why I would get a W-2c from employers as it is all correct??  Very strange.  We did have a 1099G (Unemployment income) but they don't take SS tax out of that...could that be a reason?

[hazelwoods]

I have this exact same problem. Definitely paid max social security this year, but got an NEC form for VERY small side gig $600. I keep answering NO to everything in that Covid section, but it won't get rid of that annoying message.

[SteamTrain]

....... could be a simple rounding difference in box 4.  Try adding 50cents to box 4 on any W2 that has nearly 50cents on the final digits and see if the  Warning/Notice (and that's all it is) still occurs.

IF it does, then that is what's going on...i.e. just a rounding difference between what your employer did, and what TTX did.

Then return box 4 to it's former # and ignore that notice/warning. 

__________________________

I tested my desktop software.....and for my test, in a situation where the 6.2% was close to $$$$.50..... a value of $$$$.49  in box 4 gave me the warning, and $$$$.50 did not....and that's all a rounding issue.

[jmwink72]

That didn't work...Same message about W-2c on the way?

[jmwink72]

Rounding up didn't help.  What's strange is i could have filed last week and had gone through this process and the W-2c on the way never came up all last week....and now today it does?  Just seems like it's a bug or something?

[SteamTrain]

@jmwink72 

Well,

1) IF you are sure of every box 4 entry being exactly 6.2% of box 3.

and

2)  if the rounding of the cents in box 4 wasn't involved (Check EVERY W-2) ..

and

3)  If you have no 1099-NEC or other self-employment income on your tax return..

Then either ignore it...or call Customer Support since none of us can see what's in your tax file.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[SteamTrain]

That notice doesn't stop you from filing...

There's all kinds of bugs fixed every Wednesday or Thursday evenings...and still a bunch more that need correcting, or forms needing updates in the next few weeks....Never file before March....or mid-March this year because of all the COVID "stuff"" bollixing things up.

[jmwink72]

Did they ever back with you?  I was on for around the same and they said you're probably going to get a W-2c from your employer as it says and tried to explain that all my SS taxes were paid correctly and that this issue just came up today when I had this setup weeks ago - today the issue came up (not yesterday when I reviewed).  Not very helpful.  Seems to just file as I paid the 6.2% on all W2s.