Social Security Tax Not Reported

Scotty8 · ‎April 12, 2025

Same thing happened to me. Filed joint return March 10, 2024 and got IRS Notice CP10 stating "Your 2024 return has been changed". I paid for the Turbo Tax Deluxe Desktop software. I'm retired accountant so have always just gone to Forms to start a new years return and I never ran across any question asking about living abroad where SS proceeds were taxed and the answer would be no anyway. So I owe around $5,000 more in Federal income tax as a result of Turbotax's error but fortunately IRS just took the difference out of my refund that I had applied to 2025 estimated taxes. My Idaho state tax was filed at same time and I expect them to notify me about the extra tax due but this might take a month or two. Maybe right after April 15th I should just file an amended Idaho return and pay the additional taxes.

My question now is how to correct the Turbotax mistake affecting my 2024 1040 as I have a carry forward into 2025 tax year for Itemized Deductions and that amount will change along with my estimated tax requirements. Filing a amended 2024 Federal return would be wrong as IRS already sent me the correction notice and reduced the amount of my refund accordingly so that is all good.

DianeW777

Yes, you are correct. An amended return would be wrong, however you can do it as a paper return and just don't send it. And you should amend your Idaho (ID) return by April 15th just in case they don't do it soon enough. You can choose to pay any difference when you file it (advised to eliminate penalty) and then wait for your refund from the original return. You may have accidentally selected 'Yes' the income was from living abroad. See the image below.