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.

[ChrissyZ]

Thank you for your help! Since I'm here, and you all know a whole lot more than I do about these things, could you possibly give me some insight on the following? The IRS sent me a letter saying that I'd get only $600 for this latest stimulus check. I make well under 30K and have for the last 9 years. My AGI is only 27,000 something! Practically living on the edge of existence. I collect a pension and SS. Why am I not getting the full amount I am entitled to? I fill out a simple tax form, have no investments, have never deferred anything....easy peasy. What am I supposed to do now? Just wait and see if the IRS notices the error and corrects it?? Thank you for any understanding and suggestions you can give me. -Chrissy

[JohnW152]

@ChrissyZ 

First, if you qualify for a third stimulus check, you can get up to $1,400 for each taxpayer in your household plus $1,400 for each dependent.  To find out if you are eligible and how much you can expect, visit the TurboTax Third stimulus check calculator.

See if you come up with the same dollar figure the IRS did.

If not, look at the IRS’s letter to see if they provide a reason for the lesser amount, and what method they suggest for you to contest its determination – you always have the opportunity for a second look.  There could very well be some mix-up in their records. 

You can also contact the IRS using a phone number dedicated to Economic Impact Payment issues.

See Coronavirus Assistance Impacts at the top of the IRS's Let Us Help You page for the number.  Be aware, though, that live phone assistance is very limited at this time.

[mrmikegap]

The on line version of TT is not fixed. Like everyone else, my box 4 is 6.2% of box 3. I logged on today for the first time, filled out all the forms, and got the error when I went to e-file. Deleted my wife's and I W-2, reentered amounts, and still the "excess FICA withheld" error. HELP!!!! Yes, I can still file by mail, but I want to e-file. 

[SamS1]

No sure that is the same error if I am reading your question correctly.  If FICA was deferred, your amounts in in box 4 would have been less than 6.2%.  You should not get a warning that excess FICA was withheld.  The FICA wage limit was $137,700.  Is your box 3 more than that amount?  Could you possibly have multiple W2s where the FICA wages total more than 137,700?  That would cause you have excess FICA withheld and you would see a credit amount on line 10 of Schedule 3.  

You can review your 1040 in the following steps:

1. While in your TurboTax account, select Tax Tools in the left margin
2. Select Tools
3. Select View a Tax Summary
4. In the left margin, select Preview my 1040

[mrmikegap]

My box 3 was not over $137,700, and I have only one W2. Also, no FICA was deferred. Line 10 on schedule 3 is only $1. 

[SamS1]

That's a credit for excess social Security tax withheld.  Lower your box 4 amount on your W-2  by the 1 dollar and it should clear your excess Social Security taxes withheld warning.  

[mrmikegap]

Lowered my box 4 by the $1, but the excess FICA error/Tier 1 RRTA tax withheld claimed as credit still happens.

[chesspupil]

I think for certain employers this will make sense. 

Congress / POTUS forced employees to defer certain SSI payments, or maybe it was executive action under POTUS.   See CARES ACT.   https://www.hwco.com/deferment-of-employees-portion-of-social-security-taxes/

In other W-2 Oddities, possibly related:

So when I see a value K of unknown terms in block 14 and add it to the miss-valued block 4 I get something really close to 6.2%:    I think it will be a tax owed without penalty if you believe the article. 

As is my block 4 is 4.3%.  The mystery K value equal 1.6%  4.3% plus 1.6% = 5.9 %  0.5% off, off but I think many of you remember POTUS did something funny with our pay, deferring SSI   in 2020 and it was not an action with my employer that I could get out of doing.  Half of the difference is due in 2021 taxes and other half is due in 2022 per the above article.

[mrmikegap]

@SamS1 

Was just thinking, could it be that I didn't correct this error prior to paying for the on line version of TT, and then tried to e-file? Therefore, TT is not updating the changes to my W2 and is still using the data I first entered? 

I tried to "clear and start over," but TT says I can't because once you register a return, or pay TT fees, they can no longer clear and start over.

[ReneeM7122]

@mrmikegap Just to clarify, did you already efile your return, or did you just try to?  

If you are getting that error message and you did not efile yet, then instead of trying to clear and start over, you should delete your W-2 form.  

• Open or continue your return in TurboTax.
• In the left menu, select Tax Tools and then Tools.
• In the pop-up window Tool Center, choose Delete a form.
• Select Delete next to the form in the list and follow the instructions.

That should clear your information.

[ChrissyZ]

I should just go to a tax expert and let THEM do my taxes! I kept getting this deferral message and finally, since I was so close to the end, just ignored it and filed my taxes. My biggest problem now is why I'm only getting a $600 stimulus when I make less than 30K a year,, have an AGI of $17,986 (!) and have been living on the edge of existance since I began collecting S.S. 9 years ago. None of this makes any sense. No one could have a simpler tax profile than ME! 

[mrmikegap]

@ReneeM7122 

I was trying to e-file my return, which happens after I entered my credit card info to pay for using TT, when I got the FICA error. TT gave my error that I cannot e-file until the error was cleared, or I could submit my return by mail. 

I followed your advice, and I still get the FICA error. FYI, I even entered the amount in box 4 $1 less then what's on my W-2.

[KathrynG3]

Based on your income for the year, it would appear that you are correct, and would qualify for the full $1,400 third stimulus.

You may need to reach out to the IRS for an explanation. Be sure you are truly interacting with the IRS. They do not initiate contact via email, text message or social media.

For more information, see: Questions and Answers about the Third Economic Impact Payments — Topic E: Requesting My Payment

More details about the third round of Economic Impact Payments | Internal Revenue Service

@ChrissyZ

To check if the calculation is correct, verify that Box 4 of Form W-2 is Box 3 * 6.2% and Box 6 of Form W-2 is Box 5 * 1.45%.

It would appear that you are correct, that the system is holding on to initial entries. It is very useful for you to be sure to log out completely and close the browser window. Use a Windows PC with Windows 10 and an incognito Chrome browser to open your return. 

Then, delete Form W-2 as @ReneeM7122 described at Tax Tools. 

Re-enter it by returning to the Jobs(W-2) section. The shortcut: Enter W2 in the search box. Select the Jump to link in the search results.

@mrmikegap

[jtmttax]

For the past 15+ years the W-2 that I receive is for imputed life insurance and has NEVER had any Social security tax withheld....Box 4 has always been blank.  This is the first year that I've received this notice from TTax.  The total wages shown on this W-2 is only $101.52.  To the best of knowledge, these wages have been included in my total income.  I have never intentionally "deferred" any taxes.  (The "man" will find you sooner or later.  🙂 )I will still file this return and wait to see if a W-2C ever shows up and then deal with it at that time.

[Reth1990]

i'm getting the same error with TurboTax and i did not defer any part of social security

not sure why i'm getting w2C information