I just received a bill for my husband's and my social security taxes that the IRS says was not on our 1040 submission for 2007. Which line on the 1040 form do you enter the information from your W-2 line 4? The exact phrasing from IRS:

The payment information (e.g. income tax withheld, earned income, credit, etc.) that we have on file does not match entries on your 2007 Form 1040.

Our W-2 submitted does show our box 4 withholdings.

We had Express taxrefund.com do our taxes for us and we received a refund for 2007. Now we get a bill for over $2,000 from the IRS.

For our line 7 on the 1040, we input the monies from box 1 on our W-2. Should we have entered the amount from box 3?

I am totally confused why we're getting a bill for money withheld??

Line 1 of W2 has income to be reported on line 7 of Form 1040.
Line 3 has SS wages, which is equal to figure on line 1 or slightly more than that.
Line 4 is 6.2% of income on line 3.
Line 6 is 1.45% of income on line 5.

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Originally Posted by MukatA

line 1 of W2 has income to be reported on line 7 of Form 1040.
Line 3 has SS wages, which is equal to figure on line 1 or slightly more than that.
Line 4 is 6.2% of income on line 3.
Line 6 is 1.45% of income on line 5.

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Yes, we reported wages on box 1 of W-2 and are now being taxed for our Social Securilty Taxes withheld on box 4.

IRS is saying our 1040 doesn't match our W-2 for the SS withhelding in box 4. Our W-2 has box 4 clearly but where do you input that figure from box 4 on the 1040 - what line on the 1040? And if there isn't anywhere, why are we being taxed on withholdings for SS? We aren't retired.

As a matter of norm, you do NOT report how much was paid in Social Security and Medicare taxes anywhere on the Form 1040.

Based on the wording in your oroginal post, I suspect that Express TaxRefund.com botched the tax return, but I cannot say for sure what is wrong without actually review your 2007 tax return and comparing it to the IRS letter.

If you want my help to do that, email me at [email protected].

If on W2 there is some mistake about amount of SS tax withheld, the employee is not involved. It is between IRS and the employer.
So it seems that you may have some income as independent contractor reported on 1099-misc.

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Originally Posted by MukatA

If on W2 there is some mistake about amount of SS tax withheld, the employee is not involved. It is between IRS and the employer.
So it seems that you may have some income as independent contractor reported on 1099-misc.

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No, the amount the IRS is showing as income for SS taxes is the same amount on our W-2 as our SS taxes withheld from box 4. Both my husband are State employees, so would it still be an employer and IRS issue?

The letter from the IRS has:

Why are you getting this notice? The payment information that we have on file does not match entries on your 2007 Form 1040. The proposed changes to your tax are:

2007 tax increase $0.00
Payment Decrease $2,209
Proposed Balance Due $2,370

Then it gives the SS withheld for my husband and then me - both of which is exactly what is on our W-2s. Then it says, if this information is correct, your tax increase is $0.00. If you pay in full by September 9, 2009, you'll owe $2,370.

So I am totally confused.

Quote:

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Originally Posted by AtlantaTaxExpert

As a metter of norm, you do NOT report how much was paid in Social Security and Medicare taxes anywhere on the Form 1040.

Based on the wording in your oroginal post, I suspect that Express TaxRefund.com botched the tax return, but I cannot say for sure what is wrong without actually review your 2007 tax return and comparing it to the IRS letter.

If you want my help to do that, email me at [email protected].

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Sure, just emailed you. More information below.

The amount the IRS is showing as income for SS taxes is the same amount on our W-2 as our SS taxes withheld from box 4. Both my husband are State employees, so would it still be an employer and IRS issue?

The letter from the IRS has:

Why are you getting this notice? The payment information that we have on file does not match entries on your 2007 Form 1040. The proposed changes to your tax are:

2007 tax increase $0.00
Payment Decrease $2,209
Proposed Balance Due $2,370

Then it gives the SS withheld for my husband and then me - both of which is exactly what is on our W-2s. Then it says, if this information is correct, your tax increase is $0.00. If you pay in full by September 9, 2009, you'll owe $2,370.

So I am totally confused.