TurboTax saying a W-2c is on the way?

[NC-tax-mom]

We got the same curious message, and did not defer any SS tax either. I also think this might be a bug in the program.

[Irene2805]

Some customers were incorrectly getting a message that "...a W-2c is on the way."  Even if this is true, it doesn't prevent you from filing your return now.  The IRS won't audit you for that--your employer is responsible for withholding the correct amount of Social Security tax.

To ease you mind, you can review your W-2 and make sure that:

• Box 4 is at least 6.2% of box 3; and
• Box 4 is less than the maximum of $8,537.40. 

@NC-tax-mom

[Waiting more than 21]

They won’t help! They’ll advise to check with irs as they don’t issue funds !!!!  I don’t recommend them any more they’re working with outdated software that will cause extreme delay I’ve been waiting over a month along with many others. 

[utku]

How about this... The box 4 looks like less than %6.2 of the box 3, in this case does that mean the message is valid for me and I should contact to my employer to get the corrected W-2c?

[DMarkM1]

If an employer deferred social security taxes for an employee they will automatically send the W2C once the recoup period is done (now Dec 2021).  Employees do not have any actions to take in these circumstances.  The W2C simply reports the corrected social security tax withheld to the Social Security Administration and is informational for you.  Your tax returns will not be affected.

[Chongmaw Chen]

Both my wife and I are retired and don't work, so there are no W-2 form.But the Import summary wants us to add W-2. How to override it?

[EbonyA]

@Chongmaw Chen Please ensure that you did not inadvertently say yes to any W2 related questions; you may review and delete any such applicable forms by following these steps.

[utku]

Thanks for your reply. If box 4 is less than %6.2 of Box 4, does that mean my employer deferred some social security taxes? Btw, it is just about $80 less than it should be (%6.2)

[SamS1]

Possibly.  If you didn't earn more than $137,700 and do not have multiple W2s, it wont impact your tax.  Employers had the option to defer the employee share of social social security by orders sign near the end of 2020. The social security tax withheld in box 4 should be 6.2% of the social security wage amount in box 3.  

If you had only one employer during 2020 and your Form W-2c, Corrected Wages and Tax Statement, for 2020 only shows a correction to box 4 (or to box 14 for employees who pay RRTA tax) to account for employee Social Security (or Tier 1 RRTA tax) that was deferred in 2020 and withheld in 2021 pursuant to Notice 2020-65, no further steps are required.

However, if you had two or more employers in 2020 and your Form W-2c for 2020 shows a correction to box 4 (or to box 14 for employees who pay RRTA tax) to account for employee Social Security (or Tier 1 RRTA tax) that was deferred in 2020 and withheld in 2021, you should use the amount of Social Security tax (or Tier 1 RRTA tax) withheld reported on the Form W-2c to determine whether you had excess Social Security tax (or Tier 1 RRTA tax) on wages (or compensation) paid in 2020.

For $80, even if you did have a credit coming for excess SS for having total earnings over 137,700 on multiple W2s, I would continue through and file then when the W2c does show up, amend your return for the W2c at that time.  It does not cost anything to amend your return with TurboTax.

[utku]

Thank you for your reply and clarification. Actually, I do not have $80 credit coming for excess SS as I just have 1 job. I am $80 short of original amount for SS tax withheld. (%6.2) So, in this case, I should not do anything and wait for W-2c if my employer send it out or they possible cover this shortage by withholding more taxes for SS next year 2021? I also read that I need to make a payment(probably $80) before I receive W-2c, is that correct?

[SamS1]

No.  You don't need to pay or do anything.  You employer will withhold or has withheld the additional $80 for Social Security from your 2021 pay amounts.  You can go head and ignore the TurboTax warning and continue filing your return.  You can ask your Payroll or Human Resources department about the  $80 difference in Social Security on your share and when or if it will be corrected sometime in 2021.  If you do get a W2c and the only change is in box 4, you do not need to amend your 2020 tax return filled.

[utku]

Hello Sam,

Thank you so much for your reply. I just talked to them and was told the reason of this shortage is because I redeemed some points from our rewards system that they said they used those wages(around $1400) to reach SS wages limits($137700) however those wages were added after my last payroll and was not taxable wages therefore no tax was withheld. That caused the $87 shortage. In this case, what should I do?  They said There were no payable wages to me after the final payment of the year to withhold that tax.  The system is set to calculate the wages for each tax bucket based on the taxable wages.  But, it is unable to withhold tax if there is no payable wage to withhold from. They also advised me to speak to tax advisor as they said there will be no W-2c coming for this because the wages are social security wages. I just asked them if they will or have withhold that additional amount from my payroll so waiting for their answer however I doubt that they would do anything further. Please let me know if you still think that I should just ignore all of this and go ahead and file my return. Thank you again.

[SamS1]

Yes, I would move forward. I am not sure if they are reporting the social security wages correctly but if no W2c is going to be issued, its really no skin off your nose since you received the gross rewards ($1400) with no taxes withheld.  If taxes would have been withheld, you would have received the $1400 benefit less taxes.  Six of one and half a dozen of the other.  Continue filing your return.

[utku]

Thanks Sam, I just received a final answer regarding the rewards that I redeemed. They said: "They are taxable wages. That is the reason they are added to the taxable wages and the taxes. They are included in all taxable wage buckets. There are limits on the Social Security wage and tax" and "The difference($87) is due to the late receipt of reward earnings.  Because there were no earnings in which to withhold taxes, there were none withheld" So, I am short on those SS taxes because these non-payable but taxable wages were added after my last regular pay. If my understanding is correct, are you still saying there is no action from my side? Thanks.

[SamS1]

No action.  From your, statement it sounds like you hit the Social Security wage limit for withholding Social Security taxes.  Once that limit is hit, there is no additional withholdings needed.  The W2c warning in TurboTax was there to alert taxpayers if the Employer elected to defer the employee share of Social Security into the 1st quarter of 2021, resulting in a W-2c to be issued.  Your situation is completely different.  The Social Security taxes were not deferred by your employer.  Its more a bookkeeping item for your reward points redeemed.   I would move forward as the warning does not pertain to your situation.  Thanks.