Turbo Tax 2025 calculated my Social Security income tax incorrectly

[user17728271150]

I received a notice from the IRS that my 2025 tax return was being amended due to a tax calculation error. I checked all the Turbo Tax work sheets to see if I made an error entering anything. I did not find any, and called the IRS to see what the error was. Turbo Tax calculated my taxable Social Security incorrectly. I can understand an error being made in the Turbo Tax programming, but when I tried to contact Intuit to inform them of this I was surprised at the extreme effort they go through to ghost their customers. I have been an Intuit customer for 24 years. I think I am done.

[xmasbaby0]

We have seen a lot of people who made a user error with the entry of their SSA1099.   The screen right after you enter the SSA1099 asks you if you lived in certain foreign countries in 2025.   If you skipped past that screen or answered incorrectly, your Social Security was not taxed correctly.   Look at your Form 1040 and see if line 6b was left blank due to that mistake.  The IRS is catching those mistakes and correcting them by reducing your refund.

[user17728271150]

Line 6B on my 1040-SR is “Taxable amount”. There are other lines in Schedule B part III that ask about foreign investment. Those boxes are checked “no” properly. In the TurboTax Federal Worksheet “Taxpayer is a resident of the state above for the entire year” box is checked. I will be getting mail detailing the exact problem. The IRS agent said this was a calculation problem. I specifically asked him if it was due to incorrect data being entered on my form. He said no, it was a calculation problem and he referred me to Publication 915. I haven’t read Publication 915 because I have not yet received precise information on what the error was.

[VolvoGirl]

After you entered the SSA-1099 there is a followup question asking if you lived in a foreign country.  People have been answering it wrong or missing it.

[salarmi52A]

Yres, the samething happened to me I was referred to Pub 915 , as miscalculation.

[salarmi52A]

my social security was no calculated correctly resulting in IRS correction... Re:Pub 915

[xmasbaby0]

@salarmi52A Have you read the post directly above your own posts?   Users have been making an error after they enter their SSA1099 by skipping past the next screen or by answering incorrectly when they are asked if they lived in certain foreign countries in 2025.   This is a user error that results in a blank line 6b on your Form 1040 and in not taxing your SS correctly.   Go back to your own post and scroll up on the screen.

[Bags1953]

Turbo tax shouldn’t allow you to bypass the living abroad question, if it has this impact on the taxable social security amount.  Never have we had this problem where the refund was miscalculated.  You can’t skip other questions.  

[VolvoGirl]

I just checked my Home & Business Desktop program.  It didn't let me skip the Foreign Country question.   Are you married?  I just made a screen shot for married

[Bags1953]

I am married and have been using this program for years.  This is the first time my taxable social security was left blank. Hence we are getting an adjusted refund.  We both verified the input of income and according to previous comments this is  the reason our taxable social security didn’t go forward. It’s either this problem or a glitch in the system. If there was a system glitch, we should get a partial refund. 

[susanjwitt]

I tried using this software this year and entered our fairly simple info exactly as I entered it into the H&R Block tax software. Your (TT) software told me I would get an approximate $14,000 refund as compared to the $1,800 refund I was told I would get with H&R Block. I paid $121.10 for this return as this was the only way that I could see the actual returns. I did NOT file them electronically, as I had already done this through H&R Block. When I printed your return and compared it to the H&R Block return, I quickly realized that the error was due to your software not including our Social Security income as taxable income. Unfortunately, it is taxable for federal purposes at 85%. Thus the huge difference in our refund amounts. 

Had I used your software first and filed this return, I would have been in deep trouble with the IRS due to underpaying taxes for 2025! This is a VERY SERIOUS issue with your software, and I guarantee that there are many, many other seniors (like myself) who are going to suffer when their expected 2025 refund amounts are eventually disputed by the IRS and they owe money and penalties. 

I tried on several occasions to get a refund for the money I paid for this "experiment" and was told on all occasions that since the software was "used" that I was not entitled to a refund. I would be happy to send you a copy of the return that was produced by your software to show you exactly what I am talking about. If I don't hear from you, I will just do my best to try and warn other users about this incredibly faulty software.

Susan Witt

[phone number removed]

[xmasbaby0]

@susanjwitt  @Bags1953 

After you enter your SSA1099 for Social Security the very next screen asks if you lived in certain foreign countries in 2025.   If you skipped past that screen or answered incorrectly,  your line 6b on Form 1040 was left blank or had a zero, so that your SS was not taxed correctly.   This was a user error.  The IRS is catching these errors and adjusting refunds accordingly.

[Bags1953]

Everything was filled out properly, just like previous years.  It was stated that something would have to been entered regarding living in a foreign country.  It that’s the case, I would have entered no, as I know where I live. There are many posts regarding this glitch.  I’ll be using a different program next year. 

[htucker65]

I check all the boxes no on SSA and 1099.  still wrong

[MonikaK1]

Please clarify. What is wrong about your return regarding Social Security?

Please see this help article for more information about how to enter Form SSA-1099. Be sure to answer the question on the page that asks whether you are a US citizen who lived in one of the listed countries.

@htucker65