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My client makes about 150k+ and wife 50k, which pushes them over 200k; however, the software 2016, 17 & 18, provided them with an overpayment credit for SS.

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Level 1

My client, prior to marrying in 2016 had no SS overpayment concerns. However, filing married starting in 2016, the software automatically issues an overpayment in SS and add the overpayment to his tax returns. The IRS is pursuing collections of almost 20k for the overpayments. Has anyone had this issue with the software automatically generating an credit / refund for a client? This happened in 2016, 2017 & 2018

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Level 8

I would check the worksheet where you enter the wife's W-2 to be certain that it is not being entered as if it were the husband's W-2.  In Pro Series, you have to go all the way to the bottom of the page of the W-2 worksheet to be certain that his name has not remained there from a previous W-2.

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Level 15
Lesson to learn- mark everything as taxpayer, spouse or joint. It matters in many places.

ex-AllStar
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Level 4
Another lesson to be learned is that once the return looks finished, print it out and verify entries with original documents. If something appears odd, like a SS overpayment you didn't expect, figure out what happened.
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Level 15
Totally agree.  Always be critical of what the program produces.  Ultimately, you need to be able to explain everything on the return to your client or the tax authorities that may send your client a notice.
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Still an AllStar
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Level 8

I would check the worksheet where you enter the wife's W-2 to be certain that it is not being entered as if it were the husband's W-2.  In Pro Series, you have to go all the way to the bottom of the page of the W-2 worksheet to be certain that his name has not remained there from a previous W-2.

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Level 15

PEBCAK, regardless of the software. 


ex-AllStar
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Level 15
Level 15

Agree with above, sounds like you assigned both W2s to one person, resulting in over payment of SS.

That little checkbox at the top of the W2 worksheet for Spouse can make a big difference!


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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