@TaxOverpayment
"Turbo Tax Online is not doing the actual calculation for excess social security tax payment."
This is not correct.
TurboTax will calculate the excess Social Security tax withheld and add it to Schedule 3, when the IRS allows it.
The issue that has come up this year is that the taxpayer submitted multiple W-2s with the same EIN on them. This can be the result of a taxpayer working for a PEO,
Normally, a PEO (Professional Employer Organization) handles the personnel as their own employees. Since that is the case, the IRS (correctly) considers that you have only one employer - your PEO.
In this case, the IRS will not accept the request to refund the excess SS tax through your tax return, and neither will TurboTax. In the past, the IRS has sent letters to taxpayers who claimed the refund of excess Social Security taxes on their return when the "two" employers had the same EIN; these letters told the taxpayers to go back to their employer(s) and get the refund from them.
The same thing happens when a company changes divisions internally and moves an employee from one to the other. If both divisions have the same EIN, then the IRS policy is that since this is really one employer, you must ask the employer for the refund.
This a change from prior years where TurboTax had a workaround for this second situation, but that workaround has been removed, based on IRS guidance.
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