social security taxable income error

[jabentay]

TurboTax 2024 free version made a mistake in calculating my taxable social security income. This resulted in a correction made by the IRS. My refund should have been $5000 but the IRS said it is only $200. What is my recourse?

[LeticiaF1]

You can submit a claim under the TurboTax 100% Accurate Guarantee.  For more information on how to do this, click on the TurboTax help article below:

How do I submit a claim under the TurboTax 100% Accurate Calculation Guarantee or 100% Accurate, Exp...

[VolvoGirl]

What usually happens is the IRS changed some other income on your return.  Like the taxable amount of a 1099R you got or you missed entering some income.  Like if a  1099R got entered on the wrong line 1040 line 4 or 5, the IRS would miss it and think you didn’t report it.

By increasing your other income it made more of your SS taxable.

Or There is a new question this year asking if you lived in a foreign place.  People have been answering it wrong or skipping it.  Go back through the Social Security entries.  

[jabentay]

Thank you .

I reran turbotax and found out it was my mistake. While I was entering my social security numbers for both my spouse and myself, there is a list of countries where SS income is not taxable and a question "does this apply to "myself". I checked yes" thinking I was being asked whose taxpayer's 1099-SSA my info was for.

Actually, I was saying I live in one of those countries. 

[Dan126]

I know that increasing Other Income would also increase the taxable SS amount, but should I expect that it would nearly double the impact?  

When I add $4,900 of hobby income for myself, my wife's taxable SS increases by $4,200.

[VolvoGirl]

@Dan126   But how much was your total SS?   Like what percent of your SS is the 4,200?

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.   Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.