What year is the IRS notice for? I think it's a little early for them to be sending this type of notice for 2021. For 2020 the maximum Social Security tax is $8,537.40.
Did you file as married filing jointly for the year in question? If so, the maximum and the credit, if any, are calculated separately for each person. The maximum amount is per person. If you and your spouse each had only one employer, then neither of you had multiple employers, so you do not have any excess Social Security tax withheld, and you are not entitled to the credit.
If any one employer withheld more than the maximum, you have to get the excess back from the employer. You cannot claim a credit for it on your tax return. You can only get credit on your tax return if each employer withheld no more than the maximum, but the total withheld by all employers is more than the maximum. Again, this is calculated separately for each person on a joint return.
@dushdhyani wrote:
How exactly does TurboTax communicate to the IRS the details regarding number of employers?
TurboTax does not communicate the number of employers to the IRS. The IRS gets copies of your W-2s from your employers, so the IRS knows how many employers each of you had, and how much Social Security tax each employer withheld.
