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jfulcher
Level 1

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

I actually maxed out my Social security last year.
100 Replies
Strutz
Level 2

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

I am experiencing the same thing: Turbotax is saying I deferred part of my social security last year and will be getting a W2C. I cannot find a box that I mistakenly checked that would give the program an indication that I deferred social security. I too maxed out and 6.2% was taken out and reported on the W-2. Perhaps a program error?

DianeW777
Expert Alumni

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

You did not defer anything.  Your employer was allowed to defer this tax.

Check the amounts in box 3 of your W-2 and the amount in box 4.  Box 4 should be 6.2% of Box 3. 

 

Review the IRS Notice 2020-65 which explains more about this topic.

 

To Employers

If you deferred the employee portion of Social Security tax under Notice 2020-65, when reporting total Social Security wages paid to an employee on Form W-2, Wage and Tax Statement, include any wages for which you deferred withholding and payment of employee Social Security tax in box 3 (Social security wages) and/or box 7 (Social security tips). However, do not include in box 4 (Social security tax withheld) any amount of deferred employee Social Security tax that has not been withheld.

 

To Employees:

If you had only one employer during 2020 and your Form W-2c, Corrected Wages and Tax Statement, for 2020 (if you get one later), only shows a correction to box 4 (or to box 14 for employees who pay RRTA tax) to account for employee Social Security (or Tier 1 RRTA tax) that was deferred in 2020 and withheld in 2021 pursuant to Notice 2020-65, no further steps are required. 

 

This does not affect your tax return, only your social security account. For most employees no action is required.

jfulcher
Level 1

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

That's the odd part my box 4 is 6.2% of box 3.  It seems like a bug in TurboTax.  

DaveF1006
Expert Alumni

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

I would ignore this as this will not affect your overall tax return. Don't be surprised if you don't receive a W2C despite what the screen says.

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Strutz
Level 2

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

Both W-2s (married filing jointly) show box 4 is precisely 6.2% of box 3. There is nothing I can see on either W-2 that would indicate a deferral. My W-2 box 3 is at maximum and my wife's box 3 is the same as box 5 (medicare wages). I will ignore this as I agree it has nothing to do with IRS filing.

 

jmwink72
Level 2

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

I am getting the same thing.  I did my taxes about 2 weeks ago and never got that message but hadn't filed yet.  Just went through again today and came up all of a sudden.  All SS takes box 4 are 6.2% of box 3.  Called TurboTax and spoke with them and they didn't know and thought maybe I'd be getting a  W-2(c).  Tried to explain that this issue came up today etc.  

 

We are still able to file and (like above) seems to be a glitch as it wasn't there over the last couple weeks (all my W2s were in and this never came up).

 

Figure I'll file next week regardless but all SS takes are paid correctly.   Thoughts?

SteamTrain
Level 15

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

Yeah, it's a glitch introduced by last night's software update.

 

One person found that increasing his box 4 value from  $$$.36 to $$$.56, was successful in getting rid of the notice.  I tried his W-2 numbers and $$$.50 lost the notice, but $$$.49 did not...which is exactly the point where rounding intrudes.

 

But leave your number as they are and ignore it if you are sure that box 4 (in the software form)  is 6.2% of box 3  .........(unless you want to test it yourself...but make sure you return the value of box 4 to what is on your W-2).

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
Crikitred
New Member

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

It says that on mine too. I'm wondering if it's because my husband works for a school district and they don't pay into social security. He won't qualify due social security when he retires either, unfortunately. But maybe that's why it said that?
DrPenguin
New Member

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

Same here, obvious glitch. Still spooked me a little. My spouse maxed out on ss and mine is 6.2%. 

barnabus
Returning Member

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

I also received this error as my Box 4 is 6.999999%

 

I am trying to use the FREE edition to file my taxes, but have hit a paywall because of this error. The above triggers a need to file Form 8959 which is not included in the free version.

 

How do I work around this without modifying Box 4 to equal exactly 6.2%

 

It feels like Intuit is forcing me to pay for Premium due to this software glitch.

SteamTrain
Level 15

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

@barnabus 

 

I don't think The 8959 wouldn't be needed for that.....but h who knows.

 

How Far off is the box 4 in an absolute $.xx  amount ?

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
blasterj
Level 2

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

I agree this is a new problem with Turbo tax.   We should not tinker with the W-2 actual data for their error.  They need to fix this.

barnabus
Returning Member

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

@SteamTrain Form 8959 is necessary if a W2-C is necessary. In my case this is triggered because of the discrepancy in Box 4, which must total 6.2% of Box 3.

 

In my case that discrepancy is $0.00744 

 

Intuit - how do we resolve this issue?

SteamTrain
Level 15

Turbotax is saying I deferred part of my social security last year and will be getting a W2C. However my employer says I didn't defer and won't be issuing a W2C.

....has to be something else...like a high income that requires either the form 8959 to calculate extra Medicare tax, not SS tax.  ....or, that might be the result of an entry error in box 6,........ or a missing box 12 code B or N entry, or certain box 14 entries for Medicare taxes if you are a RR employee.....(or you have self-employment income...but a BIG upgrade is required for that)

_________________________________

The W-2C notice is probably just a coincidental fluke.  Increase your box 4 to the next even $1 and the W-2C notice will likely go away, and the 8959 form would  still be needed.

_____________________

I'd point you to Customer Support on the phone...but FREE users don't get phone support  (they don't have to if you aren't paying them anything).....and I'm just another user......and all you can hope for is someone stumbles on this post who has had that "exact" issue before knows how to fix it.....if it is indeed fixable...your tax return may need the form 8959 anyhow due to your income situation.

 

https://www.irs.gov/pub/irs-prior/f8959--2020.pdf

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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