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?

[michael_z_grover]

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?

[rjs · Accepted solution]

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.

[michael_z_grover]

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