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?

[efiler123]

in my case, deleting W2 did not work. See the same message about SS deferral and once I click continue the next step keeps spinning. how do I locate the forms to remove the "0"?

[JeffreyR77]

If you believe you received this message in error, you can continue to file your tax return.

We expect this issue to be resolved by 2/26/2021.

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[docbones69]

Thanks - just to add another report of the error occurring.  Only one w-2, and I am NOT self employed nor did I defer any social security tax.

[JeffreyR77]

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We expect this issue to be resolved by 2/26/2021.

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[Jane68]

Hi,

It said I would be receiving a W2 C

I did not defer my social security tax last year.  I retired in March of 2020.

Why am I receiving the message of a W2 C

Thank You

[email address removed]

[JeffreyR77]

If you believe you received this message in error, you can continue to file your tax return.

We expect this issue to be resolved by 2/26/2021.

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[rchead037]

This is clearly a bug. In my case, I have a small amount of Schedule C income (my own business), only a few hundred dollars, so I'm not required to pay self-employment tax on Social Security. But it puts in a zero and tells me I might be 'eligible to defer', (which I'm not), and then pops up the W-2c warning (which is completely irrelevant because Social Security tax on self employment does not come on a W2. 

To many moving pieces in our tax code, then last-minute changes and deferral by Congress, so I really can't blame TurboTax for this. It won't block filing, it seems, and I trust TT will get it straightened out in an update eventually.

[JeffreyR77]

If you believe you received this message in error, you can continue to file your tax return.

We expect this issue to be resolved by 2/26/2021.

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[lanaubt4]

I too received the message that I would receive a W-2c after I elected to use last year's (2019) income to calculate earned income.  When I deselected using last year's 2019 income to determine Earned Income, the W-2 c message was resolved.  In this instance I had Social Security income, Pension Income and a W-2. I believe the system goes back and determines a W-2 is needed because you are using 2019 income basis and that means you will social security taxes paid will not be determined correctly.  System to system.

[JeffreyR77]

If you believe you received this message in error, you can continue to file your tax return.

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[sureshpendap]

I am also getting the same error. Initially I thought that it is because of the EDD benefit that I got this year. However I just removed that and am still getting the same message about Deferred Social Security tax.

I double checked both the W2s the value in box4 is 6.2% of box3.  It is very annoying if it is indeed a bug in Turbotax software.

[NavyDad]

My son is in the Navy.  After doing his taxes for him, this W2c message was driving me crazy.  I checked everything and found the FICA on his W-2 was understated.  I "corrected" it (to 6.2 percent) and the W2c message went away.  A review of his leave and earnings statement solved the puzzle.   Here is the message on his DFAS Military Leave and Earnings Statement:

FROM SEP THROUGH DEC 2020 THE WITHHOLDING OF
YOUR SOCIAL SECURITY (FICA-SOC SECURIT) TAX
WILL BE DEFERRED IF YOUR MONTHLY BASIC PAY
RATE IS LESS THAN $XXXX.66. BEGINNING IN
JANUARY 2021, THE DEFERRED TAXES WILL BE
COLLECTED THRU APR 30, 2021. FOR MORE INFO
VISIT HTTPS://WWW.DFAS.MIL/TAXES/SOCIAL-
SECURITY-DEFERRAL/MILITARY-FAQS.

I guess the military didn't inform Turbo Tax that it was deferring FICA at the end of calendar year 2020. 

You can find more on this on the DFAS website:

Defense Finance and Accounting Service > taxes > Social Security Deferral > Military FAQs (dfas.mil)

Here is what you will find.

Why were my Social Security taxes being deferred?

In order to provide relief during the COVID-19 pandemic, per a Presidential Memorandum issued on August 8, 2020, and Internal Revenue Service Notice 2020-65 issued on August 28, 2020, the Social Security tax withholdings of service members who met the wage threshold were deferred.
Note, the Social Security taxes are shown on Army, Air Force, and Navy Service Members’ Leave and Earnings Statements as “FICA-SOC SECURITY”) tax withholdings. The Social Security tax is labeled as “Social Security” on the LES for the Marine Corps.

 Presidential Memorandum link: https://www.federalregister.gov/documents/2020/08/13/2020-17899/deferring-payroll-tax-obligations-in...
This should help those who are having issues related to the W2c if you are doing a tax return that includes military income.  

Too bad nobody told Turbo Tax.  It would have been an easy fix for them.
IRS Tax Deferral Implementation:  https://www.irs.gov/newsroom/guidance-issued-to-implement-presidential-memorandum-deferring-certain-...

IRS Notice 2020-65: https://www.irs.gov/pub/irs-drop/n-20-65.pdf

Hope this helps.  Again, too bad nobody notified Turbo Tax. This is bound to reappear in 2021 as an overpayment (as the deferment is paid in 2021) if it goes ignored by Turbo Tax again.

[JohnB5677]

If you got the message  "Heads up! You have a W-2C coming" .  This was fixed in the newest release on 2/19/2020.

Only the customers who now legitimately will receive a W-2C will still get the pop up.

A W-2c form is used by the United States Internal Revenue Service for tax filing and reporting services. This form is known as a Corrected Wage and Tax Statement form.

@NavyDad

[NavyDad]

After I updated the W2 information back to what was actually on his W2, the message popped up again.  I am not convinced that Turbo Tax made the adjustment or, if it did, it was done properly.  

[wally0217]

on March 7 I got this same error stating I had deferred some of my SS taxes and would be getting a W-2c.  This is well after the date where the EXPERT said it was fixed, and obviously not.  Retired and only W2 I have is for insurance paid by the company.  SS and medicare tax have been the same for years.   Still an issue.

At least for those who are not in the military.