A W-2 error led to an improper deduction of excess SS tax on our 1040. The IRS wants the full deduction amount back. Why don't I just owe the net tax I would have paid?

My wife's W-2 was mistakenly applied to me, which led to $1,764 of excess Social Security tax being improperly deducted on our 1040. The IRS sent me a notice asking for the full $1,764. However, we received a refund of $1,141 that year. If we had not taken the deduction, we only would have owed $623 in tax. Why isn't this the amount we have to pay the IRS?

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1 Best answer

Level 15

Jun 4, 2019 3:24:37 PM

You got a refund of $1,141 from the IRS that you weren't entitled to. You have to pay that back, as well as the $623 that you would have owed if your 1040 had been correct.

Level 15

Jun 4, 2019 3:24:37 PM

You got a refund of $1,141 from the IRS that you weren't entitled to. You have to pay that back, as well as the $623 that you would have owed if your 1040 had been correct.

New Member

Jun 4, 2019 3:24:39 PM

Okay, now I see how stupid my question was. Thanks!

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A W-2 error led to an improper deduction of excess SS tax on our 1040. The IRS wants the full deduction amount back. Why don't I just owe the net tax I would have paid?