state tax return

[patsfan761]

Need your help once again.  I filed my sons taxes with the free version.  His federal went through with no problem and he got his refund.  State return was accepted but when we checked the status of his refund this is what it said. "There was an issue with the schedule W or your W2s required with your return.  Need a completed Schedule W with W2s and/or 1099 attached"  Not exactly sure what this means.  I assume if his federal went through the W2's were ok.  There is a schedule W with his return that I printed out and it looks ok.  I tried looking at a 1099 form but they all have a letter with them and this message just says 1099.

Help!

[SamS1 · Accepted solution]

My guess it has something to do with his state taxes withheld on his W-2 or 1099 form.  Normally when states ask for this information, the amount entered for state withholding is possibly incorrect or there may be a mismatch to what they have on file as withholding.    Review his hard copy W-2 and any 1099s with state withholding to amount entered into TurboTax to insure correctness.  Chances are you will be receiving a letter requesting copies of his W-2s and 1099s with state withholding.

[patsfan761]

What is a 1099?  I searched IRS forms and there was no just 1099-everything had a letter after it.  I check his printed return and I checked mine as well and there was no form 1099.  What exactly is it?

I will check his W2's though, thanks.

[ErnieS0]

If your son did not receive a Form 1099 then you do not have to report in on Schedule W. 

Schedule W is designed to report State of Michigan income tax withholding. Your son's MI tax return was probably held up because the state was not able to match up the withholding listed by your son with documents received from employers and other third parties.

The Schedule W will show all W-2s and 1099s listed on your son's tax return. As long as everything that your son received is listed, then you are fine to submit Schedule W. Do not submit W-2s and 1099s.

[patsfan761]

We do not live in MI.

I did find a 1099 for him that is for Social Security but I did not include it on his schedule W because it is not taxed so I didn't think I needed to.  He also had a couple W2's that had no state taxes taken out so was I supposed to include them too?

[DMarkM1 · Accepted solution]

Some or none of social security may be taxable depending on the total income for the recipient.  The form 1099-SSA information needs to be entered and TurboTax will do the calculations to determine the level of taxation, if any for those benefits.  

Generally, if 1/2 of social security added to the rest of his income totals below $25,000 then none of social security is taxable.  If the total is between $25,000 and 34,000 then up to 50% will be taxable.  If the total is over $34,000 then up to 85% will be taxable.  

 Also, yes all W2 income and forms need to be included on the schedule W.