TurboTax gives wrong information

[niftyix]

I filed my taxes using TurboTax Feb 1st. It's a simple return with only SSA-1099. TurboTax said I didn't need to include it with my return so we filed electronically. Instead of a refund we got a letter from the IRS that said we needed to send them our SSA-1099 so we did. Now the return is in limbo.

[DoninGA]

If you e-filed the tax return, there are no paper forms included with the e-filed tax return.

If the tax return was printed and mailed, then only forms with taxes withheld would be included with the mailed return.

Did you have federal income taxes withheld from the Social Security benefits?  If so, those taxes withheld were on the SSA-1099 in box 6 and would have been entered on the Form 1040 as a tax payment on Line 25b.

[niftyix]

That’s what we did. When we entered the amount withheld, that’s what the IRS is questioning. It seems they should have a copy of our SSA-1099 that shows the amount. Is this just a delay tactic?

[DoninGA]

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@niftyix wrote:

That’s what we did. When we entered the amount withheld, that’s what the IRS is questioning. It seems they should have a copy of our SSA-1099 that shows the amount. Is this just a delay tactic?

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Yes, they receive the information from the Social Security Administration for the amount of federal taxes withheld from every benefits statement which has federal taxes withheld.

Why they are needing this information from you and the paper SSA-1099 is either incompetence or their tax data received is incorrect.  I would guess it is the tax data received from SSA has been received incorrectly.

[niftyix]

Even if they got the info wrong, I sent the reply along with copies of my SSA-1099 4 weeks ago but when I do “where is my refund” it’s showing I didn’t reply

[BillM223]

Because of the lack of budget for the IRS and because of the pandemic, paper processing has become very slow at the IRS (don't blame the IRS, blame Congress).

If it does not appear that your response is received in another 4 weeks, contact the Taxpayer Advocate Service for help. 

[VolvoGirl]

If you only had Social Security it is not taxable and you couldn't have efiled the return with zero taxable income.  Did it show up on 1040 line 6a?  Maybe they think it's another kind of income like a pension or IRA.  

[niftyix]

Thanks for the response. I thought with the ITS hiring 80,000 new agents things would move quicker. I’ll do as you suggested.