topic TurboTax Not calculating Social Security Tax Correctly for 2025 in Get your taxes done using TurboTax

TurboTax Not calculating Social Security Tax Correctly for 2025

user17718940366 — Tue, 24 Feb 2026 00:51:29 GMT

Filing single, TurboTax did not calculate any tax on my Social Security and I am way over the threshold. It did this correctly last year. I realized this after I filed. Happen to anyone else?

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

VolvoGirl — Tue, 24 Feb 2026 00:54:00 GMT

If your return gets accepted you will have to file an amended return. But the IRS should catch that for you and send you a bill.

A common reason could be the Foreign question. Go back through the Social Security questions. There is a screen asking if you lived in a foreign place. People have been answering it wrong or skipping it. And it is for each spouse.

Also check if you ssn is valid for employment under My Info or Personal Info. That can affect many things. Needs to be yes.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

DawnC — Tue, 24 Feb 2026 00:57:35 GMT

Take a look at your Social Security Worksheet included in your return. The bottom portion details how your SS income was taxed, if at all. Is my Social Security income taxable?

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

Juhasz76 — Sat, 28 Feb 2026 00:08:15 GMT

I finally figured it out. The program has a glitch in it regarding the question if you had been a foreign resident at any time of the year. I answered no. All my answers were no. After processing the information and seeing that the Social Security amount was not carrying to the taxable column, I went back through every question and discovered my answer had been changed to yes! I can't believe how much time I wasted trying to figure this out! I changed it back to no and now it's showing correctly.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

jknower — Thu, 05 Mar 2026 14:14:57 GMT

Yes - happened to me also

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

Stumbles — Sat, 07 Mar 2026 21:46:13 GMT

Yes I am having the exact same problem. Also it shows only 24 tax on 3800. Not what the tax table shows. What a frigging mess!

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

AnnetteB6 — Mon, 09 Mar 2026 11:59:48 GMT

First, if your Social Security income is not being taxed and it should be, review your answer to the question about living in a certain foreign country during 2025. This comes up just after you enter your Social Security income.

If part of your income comes from long-term capital gains, then the total is added to your income on Form 1040 line 7. But, it is taxed at a lower rate than simply looking at the tax tables.

There is a separate worksheet called the Qualified Dividends and Capital Gains Tax Worksheet that applies that lower tax rate to the capital gains. Without going into great detail, this worksheet separates your capital gains from the rest of your income and applies the capital gains rate to the capital gains income (which is lower than the ordinary income tax rate). Then your total tax amount is reported on Form 1040 line 16.

You can see this worksheet by using Forms in the upper right corner of the TurboTax desktop version, or by looking for it when printing your return if using TurboTax Online.

When you look at this worksheet, pay attention to lines 23 and 24. The tax calculated on line 23 takes into account the capital gains tax. The tax calculated on line 24 comes directly from the tax tables. Then, the lesser of those two lines is reported on line 25 and Form 1040 line 16. Therefore, if the capital gains tax rate gives you a lower overall tax, then that is the tax on your Form 1040.

@Stumbles

Re: TurboTax Not carrying Taxable Social Security Wages to Taxable column for 2025

Juhasz76 — Tue, 10 Mar 2026 14:12:07 GMT

I already know all that you explained above as I prepared taxes for over 30 years before I retired from a CPA firm. The fact is taxable social security wages are not carrying over to the taxable column at all!

And as I explained in my original post, I wasted a lot of time figuring out the reason why & posting it to help others. Turbo tax actually changed my no answer to a yes when doing the final calculation, regarding whether I lived abroad at any time during the year. Obviously there is a huge problem with this particular question, set to default to yes rather than no, as there is a huge number of people posting having this problem on many different sites & not knowing how to fix it! And I'm sure many people do not review their returns and just rely on Turbo Tax running its check and showing no errors. I had no errors when I ran my check, but always review my returns as everyone should do. Many people are in for a huge shock when they get a tax notice from IRS showing they owe a huge amount of taxes due to the social security taxable wages not carrying to the taxable column on the return. Its such a huge problem, with all the postings, and the fact that Turbo Tax does not make a change to the program to change the default to no, it makes it seem that Turbo Tax is trying to create this problem so more people are forced to use the expert version! I've used Turbo Tax for 8 years & had no problems the first 6 years (and recommended many people to use this tax program). Last year, was the first year with a big Turbo Tax problem because my return was changed to the expert version without my knowledge or approval nor any notification! It was not until after I ran the calculation with no errors, it wanted to run an expert check in order to file the returns! I called & spoke to a manager & they said they could fix it but I would have to completely redo the tax return. I did not want to do that so I was refunded the difference on what I should have to pay without expert advice. Then I called TurboTax support to get my file changed back to the version I had always used in the past, without expert advise for 2026. After U explained what happened last year without my knowledge or approval, I was told by the expert that Turbo Tax changed everyone's returns last year without any users knowledge or approval nor notification! And now this year, with this question on whether you lived abroad anytime during the year, set to default to yes (also confirmed by a Turbo Tax Expert) instead of no is not a good tactic for Turbo Tax trying to generate more income for itself. TurboTax has always had high ratings in the past & I agreed with those ratings. But I'm becoming skeptical on recommending anyone to use it now unless you have experience in preparing tax returns. But TurboTax has built its business on being user friendly even to those who do not have experience. TurboTax PLEASE go back to what you you've been known for in all years prior to 2024, a great tax service.

Re: TurboTax Not carrying Taxable Social Security Wages to Taxable column for 2025

user17718940366 — Wed, 11 Mar 2026 13:02:20 GMT

Unfortunately, that must be what happened to me, but it doesn’t even let me go back to see what I checked after my taxes are filed. I did get the notice from the IRS and have scheduled my payment. Fortunately, I had done a trial run through Dinkytown and knew I was going to owe. Your response is exactly what I needed. Thank you.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

user17718940366 — Wed, 11 Mar 2026 13:03:15 GMT

They caught it and sent me a notice.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

LarryBoggess — Wed, 11 Mar 2026 17:34:00 GMT

I have received my IRS REFUND less $800+ dollars and a letter from the IRS stating miscalculation on Social Security. Filed married jointly, US. My posted numbers were from 1099. Turbo Tax calculated WRONG. Whats going on? Larry

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

VolvoGirl — Wed, 11 Mar 2026 21:10:28 GMT

@LarryBoggess Scroll up and read this whole thread. Are you missing the taxable amount on 1040 line 6b? If you answered the foreign question wrong or missed it that would affect the taxable amount of Social Security.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

jknower — Wed, 11 Mar 2026 23:31:14 GMT

Too bad I had to amend my return to fix it!

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

VolvoGirl — Wed, 11 Mar 2026 23:44:18 GMT

@jknower If the IRS already adjusted your return and sent you less refund or a bill you don’t need to amend. It’s already been corrected. There nothing you can do to change it now. You will come up with the same result as the IRS.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

jknower — Thu, 12 Mar 2026 12:25:56 GMT

Yes, true - but it required me to file an amended State return and pay back part of my refund

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

VolvoGirl — Thu, 12 Mar 2026 16:59:48 GMT

How did it affect your state return? If you originally didn't include any taxable amount of SS it wasn't in your federal AGI to start the state return. Which state? Most states do not tax SS and subtract it out of the federal AGI. So if it wasn't included in federal then there was nothing to subtract of the state return. And state shouldn't change.

Re: TurboTax Not carrying Taxable Social Security Wages to Taxable column for 2025

gmbryant — Sat, 14 Mar 2026 13:48:32 GMT

Thanks for the explanation. TurboTax did the same thing to me. I have used TurboTax for years without a problem but will look for an alternative tax application when filing next year.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

user17736905565 — Tue, 17 Mar 2026 18:54:17 GMT

Same thing happened to me. IRS just deposited what the real refund should have been if the SS was taxed correctly. However, I have not received any mail yet. I have not experienced any issues with Turbo tax in the past - now I can't trust them.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

davidleesmith511 — Thu, 19 Mar 2026 16:28:36 GMT

The IRS messaged me that they were not accepting my taxes as filed by Turbo Tax for 2025 since our (I fill jointly with my wife) Soc Sec income in 2025 was listed as having 0 tax due. This has resulted in a major adjustment in my expected refund.

Re: TurboTax Not calculating Social Security Tax Correctly for 2025

user17741613089 — Sun, 22 Mar 2026 06:38:02 GMT

Turbotax entered zero (0) in line 6b. I did not catch it but the internal revenue did and sent me a letter along with a reduction in my refund stating that SS should have been taxed.

Not sure what could have caused this error.