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.

[DaveF1006]

Yes, please ignore the message. You may file your return despite this message.

[ChrissyZ]

I also wrote to them after filing my taxes...in the part where they ask for comments. I assured them that they were losing business over that little 'glitch' as they call it. I, myself, almost gave up and went to Credit Karma to file.  I cannot believe they haven't fixed this since 2020! Thankfully, I read a good response on here that made sense to me so decided to just ignore that part and move on. 

[ChrissyZ]

I agree. They had plenty of time to fix this between 2020 and 2021. Ridiculous. I wonder how many people are just shutting down Turbo Tax and going to another online tax company like Credit Karma.

[SDun12]

That's funny, because TurboTax owns Credit Karma. There's nothing to fix here. 

If TurboTax detects your FICA withheld is lower than it should be (it's a very clear formula, very simple math) you'll get the W2c notice.  It generally means your employer made an election that you are probably not even aware of.   It's not a program error, but it's also not really anything you need to be worried about.  That is all they mean by "ignore the message" - that it isn't anything that really matters, it doesn't mean it is a "glitch".  

[ChrissyZ]

Well, yes, it IS funny because Credit Karma doesn't have that 'glitch'...so why does Turbo Tax?

 YOU may know and understand all the intricacies of tax business...but the rest of us DO NOT which is why this subject has SO many comments and causes so much confusion. Turbo Tax never used to have this 'deferral' notice and since so many of us have gotten the notification when, in fact, we do NOT have any deferrals, Turbo Tax should remove it. To tell us just to 'ignore' it is not good practice. I wonder how many other things we should 'ignore' and don't KNOW we should ignore! Ridiculous. 

[SDun12]

it never had this deferral notice because it applies only to some temporary tax changes that didn't exist before.  you ask what to do with the notice (which if you read it clearly states it is just an information notice) and you're told to not worry about it.  That should settle it.  Just because another service, even one owned by the same company doesn't alert you that you may get something in the mail later (which will cause just as many people to freak out) doesn't make this a "glitch". 

The question was asked, and answered.  To keep whining about it is pointless.  

[raysim52]

I wonder why some of you are saying that this is not a technical issue with TurboTax software both the desktop and online versions or that this is happening due to changes in the law. This issue started during tax year 2020 filing, people that are retired and don't pay into social security and only receive W2's from their former employers for their former companies cost of life insurance, health insurance, Etc. are getting this message. If you go back and read the post from February 24, 2021a TurboTax employees posted that this was a known software issue. 

[ha-diane79]

I got this alert when I file my income tax return for year 2020. 

This year I received form W-2c. The content of the box C Tax year/Form corrected is: 2020/W-2 01.  Box 4 shown the correct amount Social security tax withheld.  

How I am going to file this with TurboTax Premier 2021?

[DoninGA]

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@ha-diane79 wrote:

I got this alert when I file my income tax return for year 2020. 

This year I received form W-2c. The content of the box C Tax year/Form corrected is: 2020/W-2 01.  Box 4 shown the correct amount Social security tax withheld.  

How I am going to file this with TurboTax Premier 2021?

---

There is no need to amend the 2020 tax return when the only amount corrected on the W-2 is the Social Security taxes withheld in box 4 of the W-2.

[canyontopher]

I've been trying to figure this "error" out for 2 years and I see someone else has nailed it.  I don't like getting messages from TT that are meaningless and suggest I might (will) have to file a revised return someday.  The fact is that this is NOT an error and should not be flagged as such.  It is simply that I got a W2 for my former employer's life insurance that they hold on me... not at my choice!  It covers "imputed" income for which no SSA is withheld.

TT could easily skip over this and NOT generate the message because of the codes in box 12.  "C - Taxable costs of group-term life insurance..."

[Dave7547]

I had the exact same thing:  imputed income on life insurance provided by my former employer.  Likewise, they don't withhold anything (never have).  I don't think TurboTax should assume we are gong to get an amended W2.  At least the message could say "you MIGHT get an amended W2."