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Level 2
posted Jan 25, 2020 3:08:40 AM

Turbotax is not calculating my excess social security tax paid for two different companies as a tax credit on my 1040. How do I override and manually update 1040?

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1 Best answer
Level 15
Jan 25, 2020 5:51:52 AM

Ran the scenario of one employer EIN on two separate W-2's using 100K and 50K wages.  Excess SS taxes are $1,060.  Selected Yes, these are all different employers.  The screen message indicates the excess will be treated as a tax withholding.  The excess SS should be entered on Schedule 3 Line 11.  It is not, so the excess is never entered on the form 1040 Line 18d.  Looks like a program bug.

24 Replies
Level 15
Jan 25, 2020 4:11:31 AM

You don't.

 

1)  Post here what you have in box 3 & 4 on each W-2 and we'll test it to see what's happening.

 

2)  If you are mrried, double check exactly who is listed as the person the W-2 is listed for.  If one was accidentally assigned to your spouse, then of course it wouldn't calculate right.

 

3) You don't have any SE (self-employment) income on a 1099-MISC...correct? 

 

Level 2
Jan 25, 2020 4:20:06 AM

I paid excess tax and the system acknowledges that I did but it isn't reflecting the credit I am due for the overpayment on the 1040. Therefore I need to know how to override to reflect. Thanks for your help!

Level 15
Jan 25, 2020 4:39:12 AM

You can't override anything in the Online software..... And an override would not allow you to e-file either.

 

.........….You still have not indicated what your values are for boxes 3&4 of each W-2. 

 

IF there is an error in the calculation, we Need To Know what your numbers are....so that IF there is an error, we can get it fixed for thousands of other people too.

 

The credit should show up on line 18d of your form 1040...you have looked there...correct ?

 

 

Level 2
Jan 25, 2020 4:43:07 AM

I do not feel comfortable posting my personal information in an online community forum. I have done the math to validate and do in fact qualify for a credit. I also double checked my 1040 to see if it is reflected in schedule 3, part 2, 11 and it is not. I don't know why you need my personal information to validate what I am saying. Please advise.

Level 15
Jan 25, 2020 4:51:47 AM

Just to confirm, your total for box 4's added together is greater than   8239.80 ?

 

Also, EDIT each W-2 to make sure the box 4 value was put in properly in each W-2

__________________________________

IF you are uncomfortable with posting those numbers, call Customer Support on the phone. 

They can get a diagnostic file from you that wipes all personal info, but leaves the $$ values, and they can investigate further  (I hope they are open weekends now):

 

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

Level 2
Jan 25, 2020 4:55:12 AM

Yes, the total for box 4 added together is great than $8239.80 and I worked for multiple companies (I recognize the fix is different if you worked for one but that doesn't apply to my case). I called customer support yesterday and they weren't able to help me. I don't know what to do to fix the system to get the credit. I was hoping I can do an override but from what you are saying I can't. I'm not sure calling customer support again will get me anymore answers but I will try.

Level 15
Jan 25, 2020 5:22:48 AM

Maybe you'll get someone more knowledgeable this time...

 

Another Possible "fix" is to delete both W-2 forms entirely, and then enter them again.  Make sure you enter them manually, and be careful to NOT hit a comma when you put in the cents  (that destroys a number) to eliminate the possibility that  there was some strange entry or hidden character in one of the fields that screwed things up.  

______________

I tested the software with two W-2 forms form two employers.  One at 100,000 income and another at 50,000, and the proper credit was calculated and transferred to the tax forms exactly as they should have 

Level 2
Jan 25, 2020 5:28:37 AM

I have tried deleted both and re-entering. I have multiple W-2s from the same EIN. Since the wages were paid by separately operated subsidiaries of a common parent company, it is still treated as different employers. I click the "Yes, these are from different employers." options and it still isn't reflecting the credit. Are you able to test the software with two W-2 forms with the same EIN and see if it will work for you? I really appreciate your help!

Level 15
Jan 25, 2020 5:32:00 AM

Examine Form 8690 to see the calculation of the amount (line 21) that is to be included in on Schedule 3 line 11 and on Form 1040 line 18d.  Is the amount on Form 8690 line 21 not appearing on Form 1040 line 18d?  (With online TurboTax you'll need to download the pdf of your tax return to see this form.)

 

Are you subject to Net Investment Tax on Form 8960 and failing to factor that into you own calculations?

Are you subject to additional Medicare tax on Form 8959 and failing to factor that into you own calculations?

Level 2
Jan 25, 2020 5:36:48 AM

I am not subject to either of the taxes. My social security tax overpayment is not reflecting anywhere on my 1040.

Level 15
Jan 25, 2020 5:51:52 AM

Ran the scenario of one employer EIN on two separate W-2's using 100K and 50K wages.  Excess SS taxes are $1,060.  Selected Yes, these are all different employers.  The screen message indicates the excess will be treated as a tax withholding.  The excess SS should be entered on Schedule 3 Line 11.  It is not, so the excess is never entered on the form 1040 Line 18d.  Looks like a program bug.

Level 2
Jan 25, 2020 5:53:55 AM

Thank you for checking and confirming DoninGA. How can the program bug be fixed so I can submit?

Level 15
Jan 25, 2020 5:57:04 AM

We can report this to the TurboTax Moderators of the forum.  They pass this to the program developers for action.  When the bug is fixed will not be known until we receive feedback from the Moderators.  Could be one to several weeks.

Level 15
Jan 25, 2020 6:03:34 AM

Perhaps this is only occurring in online TurboTax.  I don't get the Yes/No question with the CD/download version of TurboTax unless I enter two Forms W-2 indicating the same EIN.  However, as you indicated, TurboTax seems to ignore the answer to the Yes/No question.

Level 15
Jan 25, 2020 7:02:20 AM

@kristen-kmiec 

 

DID both of your W-2 forms have the same  EIN for the "employer" ?? 

 

I hadn't tested that...only two different employer W-2 with separate EIN's.  The same EIN usually occurs only if both employers use a payroll service.....or sometimes on a company merger/buy-out mid-year.

Level 2
Jan 25, 2020 7:15:17 AM

Yes both of my W2 forms have the same EIN because the same payroll service was used. They are 2 separate companies. Sounds like it is a system bug for this case that needs to be fixed by TurboTax

Level 15
Jan 25, 2020 7:17:28 AM

It's being reported offline by @DoninGA 

 

Level 15
Jan 25, 2020 7:19:30 AM

I just tested with online TurboTax and even in online TurboTax I do not get the Yes/No question if the Forms W-2 have different EINs.  But as with the CD/download version, if the EINs ar the same, TurboTax ignores the answer to the Yes/No question and treats the Forms W-2 as being from the same employer.

 

If the employers are different, they must have different EINs.  The payroll service should be putting each separate business's EIN on the Forms W-2, not the payroll service's EIN.  If the payroll service is putting the same EIN on both Forms W-2, they are saying that both Forms W-2 are from the same employer.

 

https://www.irs.gov/government-entities/third-party-payer-arrangements-payroll-service-providers-and-reporting-agents

Level 2
Jan 25, 2020 7:33:14 AM

@dmertz 

 

In my situation the separate W-2s (prepared by the same company with the same EIN) are treated as different employers because my wages were paid by separately operated subsidiaries of a common parent company. I should be credited and the system should update the 1040 but it isn't. It is a program bug with the TurboTax system that needs to be fixed.

Level 15
Jan 25, 2020 8:00:32 AM

@kristen-kmiec 

 

Yep...that's a confirmed bug by several people...and being reported to the Moderators..  (I confirmed it happens with the Online software too)

 

Doubt it will get fixed next week since it has to go thru several reporting tests & steps, but maybe the week after.  

Level 15
Jan 25, 2020 8:28:10 AM

A subsidiary of a parent corporation is required to have a separate EIN and that's the EIN that should be on the W-2.  Apparently it's common enough for a parent corporation to mistakenly use the parent corporation's EIN that TurboTax added the Yes/No question that is presently not working as intended.

Level 2
Jan 30, 2020 2:40:39 AM
Level 15
Jan 30, 2020 3:34:25 AM

@kristen-kmiec …… We are aware of that document and are challenging it.    It has not been true for at least the last 5 years in test of those year's software.  Most of us still think it's a significant unintended bug…..Right now, the software isn't allowing it, even though it indicates it might be, but doesn't.   Certainly, someone or some team at TTX may have made a conscious decision this year to not allow it, but so far, there is no evidence that decision was ever made.

___________________

 

Your link appears to be garbled...but we know which one it is.

 

Level 2
Jan 30, 2020 3:52:21 AM

@SteamTrain I agree! 

 

sorry about the link, TTX is removing part of it because it is recognizing as a phone number