The full Turbotax statement is "Heads up! You have a W-2c coming. You can still file today-this won't affect your return. Since you deferred some of your Social Security taxes last year, you'll get Form W-2c from your employer once you've repaid what you deferred.
When you get this form, make sure it's for deferred taxes only and then keep it with your tax records. There's nothing else you need to do."
It is supposedly a "helpful" notice (which may not be helpful) , and does not change, or stop your filing of taxes in any way.
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It is likely just a calculation screw-up in the software ...that does not affect your taxes in any way. (a bug introduced in Wed night's update...One TTX Rep said they'll fix that by the end of next week)
Just edit each W-2 you entered, and make sure box 4 is entered to be the same number as on your paper/PDF W-2 from that employer. If box 4 is 6.2% of box 3...then nothing is wrong, and ignore that notice entirely.
(unless box 4 is significantly lower than 6.2% of box 3...then the notice is valid...but it is just a reminder/"Notice" and you can still file without doing anything else)
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I received that message too-heads up you have a w-2c coming. Everything's correct, with the 6.2%. My question is, I also have 4 payment vouchers that I think correspond to the message. I am owed a refund. Should I ignore the payment vouchers?
The payment vouchers are for pre-paying 2021 taxes, so that you don't owe so much next year. They have nothing to do with the SS deferment. You can ignore them if you don't think you will owe more than and additional balance due of $1000 in taxes when you file in 2022....or if you increase your withholding at work to cut down your balance due.
Are there any situations when Box 4 of a W-2 should not be 2.6 percent of wages in Box 3? (Such as work that is part-time, retiree, etc.).
No, there are no situation were SS tax withheld would be less than 6.2%. Check Box 3 and box 4 on your W-2 input to make sure the amounts entered are correct. 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 those amounts are correct, you can continue through the warning and complete your return.
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.
How do I handle this scenario?
I only have 1 employer. Box 4 is only 4.59% of box 3. (I did not defer rather my employer did). I did not receive a W-2C from my employer (still trying to get it). I'd rather not file an extension. Will the correction change what I owe or are refunded?
You just file as is. You are not supposed to wait for the W-2C for that particular situation.
.......some employers (especially US govt) deferred some SS without the employees opting to do so. The employer is supposed to be re-gaining that SS with your 2021 wages.......then, when the W-2C comes out late this year, or early next year...you won't have to do anything as long as box 4 is the only $$ amount that they change.
Thank you very much! I'll be happy to put this to rest, til next filing year 🙂
What if you were laid off from that employer in October? Will this suddenly become our problem? Or is this still the employer's obligation?
Paying social security taxes as a withdrawal from your paycheck is the obligation of the employer regardless of how long you worked for them.