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Level 1
posted Apr 13, 2025 1:33:10 PM

TT2024 SS calculation error

Got letter from the IRS saying i calculated my SS wrong. It was off by over $3000. My tax stayed 0 but because of the increase in taxable income my EIC is $188 less. I had already received my tax refund but now i have these IRS issues where I owe them money, and if i wait probably a big penalty. I have since updated TT and it still miscalculates the SS and all my entrys are correct.

0 3 536
3 Replies
Level 15
Apr 13, 2025 1:41:37 PM

For the Social Security issue, in the Social Security section of the program after you entered the amount of SS benefits you received, there was the following screen that asks Did you live in a country where Social Security benefits aren't taxed?  You needed to select NO and then continue.  Did you do this?

Level 15
Apr 13, 2025 1:42:26 PM

Is your Social Security 0 on 1040 line 6b?
What usually happens is the IRS changed some other income on your return. Like the taxable amount of a 1099R you got or you missed entering some income. Like if a 1099R got entered on the wrong line 1040 line 4 or 5, the IRS would miss it and think you didn’t report it. By increasing your other income it made more of your SS taxable.

 

Or There is a new question this year asking if you lived in a foreign place. People have been answering it wrong or skipping it. Go back through the Social Security entries.


See this thread that has a screenshot
https://ttlc.intuit.com/community/retirement/discussion/re-tax-on-social-security/01/3613956#M245879

 

Expert Alumni
Apr 13, 2025 1:42:58 PM

When going through the entries, make sure the questions that asks if you were living abroad in one of several foreign countries is marked as No.