Author Topic: 1040 IRS Mis-correction reduced SS statement number $4200  (Read 916 times)

BTDretire

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1040 IRS Mis-correction reduced SS statement number $4200
« on: April 01, 2019, 08:01:23 PM »
I just noticed the IRS, seems without notice, made a change to my 2010 1040.
Self employed, wife and I split income. Schedule SE line 3 says to subtract Self Employment insurance deduction.
The accountant subtracted all of that on my SE form and nothing on my wife's form. The IRS assumed the Self Employment insurance deduction should also be deducted on her SE form. (it should probably been split evenly between the two)
They did it and her SS statement shows her contribution short for that year. About $4,200.
 Do I need to have the 1040 corrected before approaching the SS administration?
 Or can I just go straight to the SS administration?

BTDretire

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Re: 1040 IRS Mis-correction reduced SS statement number $4200
« Reply #1 on: April 02, 2019, 11:36:51 AM »
I just noticed the IRS, seems without notice, made a change to my 2010 1040.
Self employed, wife and I split income. Schedule SE line 3 says to subtract Self Employment insurance deduction.
The accountant subtracted all of that on my SE form and nothing on my wife's form. The IRS assumed the Self Employment insurance deduction should also be deducted on her SE form. (it should probably been split evenly between the two)
They did it and her SS statement shows her contribution short for that year. About $4,200.
 Do I need to have the 1040 corrected before approaching the SS administration?
 Or can I just go straight to the SS administration?

  After further review,  the info stands, it looks like she paid $5,369 in SS tax but only got credit for $4,781.

Edit: digging deeper into the file, I find they sent a check for the additional SS tax paid, making the numbers come out correctly.
 Although, if it had been done correctly, she should have paid more SS tax and had a larger credit for that year.
But after 8 years, I don't want the headache trying to correct something the IRS made the decision to do.
« Last Edit: April 02, 2019, 11:51:53 AM by BTDretire »

MDM

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Re: 1040 IRS Mis-correction reduced SS statement number $4200
« Reply #2 on: April 02, 2019, 12:00:40 PM »
Interesting.  Don't know what was special in 2010, but it may have been the only year (e.g., not 2009, nor 2011, nor 2018) in which the Self Employed Health Insurance deduction affected the tax on self-employed income.

BTDretire

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Re: 1040 IRS Mis-correction reduced SS statement number $4200
« Reply #3 on: April 03, 2019, 08:35:01 AM »
Interesting.  Don't know what was special in 2010, but it may have been the only year (e.g., not 2009, nor 2011, nor 2018) in which the Self Employed Health Insurance deduction affected the tax on self-employed income.

 Yep, I didn't know it was that one year, but I checked my  2009 and 2011 forms,
 the SE line 3 is different on the 2010 form.
 As she said, "it's always something"
 

 

Wow, a phone plan for fifteen bucks!