Hi @Opus 17 thanks a lot for your thorough response!
To answer your questions here is how my W-2 was adjusted after the repayment of the full gross $30K amount:
- All income-related boxes (Box 1, 3, 5, and 16) were reduced by the gross amount of the repayment, i.e., $30,000 and they all have the same value.
- Federal taxes: Box 2 has not been adjusted which seems correct, per your comment.
- State taxes: Box 17 has not been adjusted which seems correct, per your comment.
- Social Security taxes: Box 4 has been adjusted even though I have not received any refund or credit by the employer for the over-collected Social Security tax. This is 6.2% of Box 3 which does not reflect the repaid Social Security.
- Medicare taxes: Box 6 (same issue as Box 4) has been adjusted even though I have not received any refund or credit for the over-collected Medicare tax. This is 1.45% of Box 5 which does not reflect the repaid Medicare.
Note: Box 3 is less than the maximum Social Security-taxable earnings limit for 2023, i.e., it's less than $160,200.
@KrisD15 thank you for your response! I am sure that I overpaid as the repayment was done on the same day I left the company and there are no paystubs issued after that to me, nor any refund of these taxes whatsoever.
@Opus 17 it seems that my case falls under the last paragraph in your comment. Since they reduced Box 3 and 5 wages and also reduced Box 4 and 6 taxes, I will ask for a direct refund to me, a corrected W-2 (W-2 C) or a statement confirming the over-collection.
