Social security taxable income mistake

[Lars6]

Yes, @LaneyN sounds exactly like the same situation, an incorrect response to the ambiguous question about living in certain countries. Again, TT needs to fix that. 

[bartolettisf]

I had this same issue. Turbo Tax calculated 47% as taxable social security amount when further research indicates that this should have been 85%. Interestingly, our 2023 tax return in Turbo Tax shows 85%. I spent all afternoon trying to find someone at Turbo Tax to help with this. Now, I’ve decided that the IRS is right, so will pay per their notice.

[bartolettisf]

As you have probably learned by now, the guarantee is only for penalties and interest (and maybe a refund of the cost of the program) 

[DawnC]

You have to have marked NO on the following screen.   If you marked Yes, the income would have shown as non-taxable.  

[Lars6]

@bartolettisf If you're able to read the thread, you'll see that you most likely answered the question about whether you lived in a foreign country incorrectly--- as I did and multiple TT users did too. The wording on the question is quite ambiguous. The result is that less of your SS income is reported as income and that's wrong. A TT Expert posted a screen shot of the foreign-country question and the proper way to answer it. 

[Extaxman]

It appears TurboTax failed to properly calculate the taxable portion of my SSA income as well.  I went from refund status to receiving a CP11 stating I owe additional tax.  TurboTax a.i. chat is no help and I am overseas at the moment; so my only recourse is to pay the amount on the notice before the due date and possibly work on a1040x later if I disagree with the IRS calculation.  Which is probably correct. The TurboTax accuracy guarantee only covers penalties and interest, it appears, not aggravation.

[m_szilagyi]

I am dealing with this! I received an IRS notice CP11 stating that the taxable Social Security benefits were changed because they were calculated incorrectly. I went from a rare refund in a year when the standard deduction went UP, to more than $2500 owed. This has caused concern for future returns and questioning the liability of Turbotax in this instance. I spoke with a Turbotax technician who states that they calculate this similarly every year but it seems as though the software dropped the ball! This just sucks! Are we supposed to review how the software is done now?????

[VolvoGirl]

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 and check, check for each spouse if married.

Some Posts
4/26/25 This user missed the question for the spouse
https://ttlc.intuit.com/community/retirement/discussion/re-why-would-tt-miscalculate-and-underreport...

4/23/25
https://ttlc.intuit.com/community/after-you-file/discussion/re-irs-changed-refund/01/3674438#M798051

[m_szilagyi]

Based on my conversations with a Turbotax technician today and information on the IRS website

https://www.irs.gov/newsroom/irs-reminds-taxpayers-their-social-security-benefits-may-be-taxable

you guys should double check the software. I have gone from an expected refund to owing over $2000. Not officially a penalty but it certainly feels like it and you guys need to accept accountability.

[m_szilagyi]

I don't remember those questions. Since the IRS is the US taxes, why would you even ask it that way unless it refers to additional income? Until changed, Social Security in the United States is taxable income.

[bartolettisf]

Really annoying. Like you I had virtually the same return last year with no problem on the tax calculation. They claim I neglected to enter “no” when asked if I live overseas but I don't believe the system asked me, and even if it had, that should trigger an error warning.