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DaveF1006
Employee Tax Expert

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 depends. There have been a number of  issues with this but the good news is, you can still efile despite this error. Also, if there were no reason for you to receive this error, your chances are excellent that you will not receive a W2C despite this warning.

 

[Edited 04-04-2021|12:17 PM PST]

 

 

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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 had the very same issue, but the problem was solved with a TT software update.  This issue has been discussed in various discussions and TT response was a fix in updates.  When I updated the software, and restarted TT, the problem message disappeared.  So make sure your software is updated.  If it has, DaveF1006 response is absolutely correct.  

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.

thanks sir.

i calculated the box 3 and box 4 on w2 for 2020. 

2019 was exactly 6.2% but 

2020 was 4.3455% taken out in box 4 SS tax withdrawal. 

I work for the Federal govt. Do you think i will get a new w-2C?

 

DaveF1006
Employee Tax Expert

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 depends. You may be issued a W2C to make up the difference if the federal government discovered the error.

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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 in the same boat. I ended up just ignoring it and went ahead and filed. 

 

SamS1
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.

Check Box 3 and box 4 on your W-2 input to make sure the amounts entered are correct. Employers had the option to defer the employee share of social social security by orders sign near the end of 2020. The social security tax withheld in box 4 should be 6.2% of the social security wage amount in box 3. If those amounts are correct, you can continue through the warning and complete your return. 

If you had only one employer during 2020 and your Form W-2c, Corrected Wages and Tax Statement, for 2020 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. However, if you had two or more employers in 2020 and your Form W-2c for 2020 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, you should use the amount of Social Security tax (or Tier 1 RRTA tax) withheld reported on the Form W-2c to determine whether you had excess Social Security tax (or Tier 1 RRTA tax) on wages (or compensation) paid in 2020.

xshooter1995
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 am retired & I did not defer any social  security  last year

DaveF1006
Employee Tax Expert

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 depends. Just ignore that warning and move past it. 

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MollyB1
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.

Has anyone contacted the IRS about this?  I'm thinking about calling just for peace of mind.

Same thing happened to me.  I didn't defer any taxes and neither did my employer.

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.

Thanks for posting this, I just ran into the same thing.  I am retired, and only have a bit of life insurance via the company, and changed that from Life to a Death Benefit this year.  However, the Benefits Office told me that I would not be receiving a W2-C.

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.

Agree

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 receiving the same message in January 2022.  My employer definitely did not defer any taxes in 2020 nor in 2021  (box 4 is exactly 6.2% of box 3).  Turbotax, can you fix this glitch? it has been over a year!

 

Also, why did my federal taxes owed go up when i included the amount of my spousal IRA contribution for 2021? My contribution was under the 2021 limit. . .

MarilynG1
Employee Tax Expert

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.

If you imported your W-2, posts above recommend deleting it and re-entering manually.

 

In TurboTax DT, you can delete the W-2, update TurboTax and re-enter it.  Always clear cache & cookies.

 

Since the error does not appear consistently, it is hard for programmers to isolate under exactly which circumstances it occurs in order to apply a fix.

 

You are still able to Efile. 

 

It is possible that your spousal IRA contribution would not reduce your taxes. However, if your tax owed increased it could be to other entries you made (we cannot see your return in this forum).

 

If you are using TurboTax Desktop, check the IRA Contributions Worksheet in FORMS to review the calculations.  In TurboTax Online, you can view the worksheets once you have paid for your return.

 

Click this link for detailed info on Spousal IRAs.

 

If you need more help with your return, consider a review through TurboTax Live.

 

 

 

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leslaaas
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.

My wife's taxes. Turbotax shows she will get a W2c for taxes deferred last year. No taxes could have been deferred, She is Social Security exempt as clergy. Does this have something to do with this error?
Her W2 show no social security withheld as it always has since being exempt.

MarilynG1
Employee Tax Expert

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.

If you are a minister of a church, your earnings for the services you perform in your capacity as a minister are subject to self-employment tax unless you have requested and received an exemption.  Your earnings are then reported on Schedule C. 

 

This includes any salary that is paid to you as an employee of the church (even though reported on Form W-2, the church does not withhold Social Security or Medicare taxes),

 

Since Self-Employment Tax was granted a deferment in 2020 (the CARES Act), this may be what TurboTax is referring to if you elected that option last year.

 

If this applies to you, click this link for more info on Deferred Self Employment Tax.

 

Or, it could be that you probably did not defer anything.  Your employer was allowed to defer this tax.

 

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.

 

Click this link for more info on Employer Deferred Social Security Tax.

 

This article has info on Ministers and Taxes you may find helpful.  

 

 

 

 

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