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gagansinha
New Member

I dont think my social security refund is reflecting in my federal refund

i see a message Your Social Security Refund
You're entitled to a refund of $XXXX for the excess Social Security withheld from your pay. This amount increases your refund or reduces your tax bill. but my federal refund on the left is not showing an increase ?
3 Replies
BMcCalpin
Level 13

I dont think my social security refund is reflecting in my federal refund

If the amount of Social Security taxes withheld was too much on one W-2, then your employer is required by the IRS to correct the W-2 and refund the difference to you. TurboTax does not do this, although it may warn you of the situation so that you can notify your employer.

If the amount of Social Security taxes withheld was too much because two W-2s put together went over $7,347 (the maximum Social Security taxes to be withheld for one taxpayer in a year), the TurboTax will compute the excess amount and refund it to you automatically as a credit on line 71 on page 2 of the 1040.

Please see Tax Topic 608 at the IRS website.





tax_filer_123
New Member

I dont think my social security refund is reflecting in my federal refund

The reply here from @BMcCalpin does not answer the question. The issue here is that Turbotax itself says

 
You may have paid too much Social Security tax in 2019
The good news is anything over $8240 comes back as a refund on your taxes

but then Turbotax seems to fail to account for the refund for any overage thereafter.

 

It is entirely possible to pay too much Social Security tax without any employer error. To be clear: the issue here seems to be with Turbotax, not any W-2 or employer error.

 

Are @gagansinha and myself missing something here? Is there some way to verify that Turbotax has applied this refund? Should we expect to get the refund separately from Turbotax somehow? Any help would be appreciated. Will be forced to seek alternative tax advice otherwise.

 

 

tax_filer_123
New Member

I dont think my social security refund is reflecting in my federal refund

I found out how to verify that it is being applied.

 

Go to the "Federal" section.

Hit "Federal Review" at the top,

Get to the "explainwhy(tm)" section

At the bottom, click where it says "How did you calculate the $XYZ of tax I already paid?" (you may have to expand a section to see this, in my case, this was under a heading that said "Your tax payments increased in 2019)

You should get a popup that says "The $XYZ of tax you already paid comes from adding up the $YYY in tax that already came out of your income and the $ZZZ of Social Security tax you overpaid and are getting back."

 

So, it's extremely confusing and hard to find, but it is in there and does seem to be accounted for. 

 

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