I just want to come back to this and explain how I fixed this issue in case anyone else with 2 employers and one CPEO W-2 has a FICA credit issue. I will add that I'm a Tax CPA with 20+ years exp. I only use TT, because my return is simple, and for a few bucks my information isn't saved on my more advanced work tax system.
Issue was Turbo tax wouldn't let me file with one W-2 and claim an excess FICA credit. You need two W-2s, with different EIN's. I input my CPEO W-2 as accurately given, and for my 2nd W-2 I only input $1 of box 1 income using my actual employer name and EIN. I left all the other boxes on 2nd W-2 blank. Using this, I was able to efile both Fed and State, and I got my full excess FICA credit as filed. Also got a timely and accurately processed return with a timely direct debit. This method isn't exactly "kosher", but all I did was over report my income by $1.
In the mean time, I also obtained a letter from my CPEO explaining in their words that, in this situation, I'm should be eligible to receive a excess fica credit. I saved a copy of my final paystubs from both employers. And I prepared a cover sheet summing the 2 paystubs to the totals on the W-2 from the CPEO.
1 year later the IRS notice came. Suggesting I took too much FICA credit and to provide support if I thought otherwise. I provided all the support I had prepared, faxed it over. Then a month later the IRS sent me a letter confirming they agreed with me and the FICA credit I claimed was correct. Boom Done.
