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IRS has adjusted my 1040 return saying taxable social security income for 2024 was understated. As this number is calculated by TurboTax I am unable to determine why this adjustment was made. Is there a glitch in the software that is causing widespread issues? in 2024 my SS income went up slightly but the taxable amount went down by about 25%. What is up with this?
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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.
One guess---we have seen some users who missed a screen after entering their SSA1099 information and they did not answer correctly on a screen that asked if you lived in certain foreign countries while receiving Social Security. Missing that screen affects the taxability of your SS.
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