I am a Certified Public Accountant, CPA licensed by NY state.
I take issue with the statement that this would be an uncommon occurrence. Considering that ADP is the largest payroll processor in the country, I would say it is actually very likely that anyone changing jobs in the tax year would receive 2 W2s from ADP for 2 different employers. In fact ADP is so large that the federal government uses its data in their labor statistic reporting.
On the options presented above, if you have this issue as I did for the 2022 tax year, I recommend filing the separate form 843 to claim your additional refund of overpaid social security tax. It will take longer but I cannot confirm that the desk top version of Turbotax can do this effectively. If our experience with Turbotax online is any indication, we can assume this is doubtful at best.
The good news is that if you used Turbotax premium, and you had this issue, you are due a 100% refund. See below and paste this in the explanation of your claim for a refund.
"I received 2 W2 forms from 2 different employers who both used the same payroll processor. Turbotax online software lacks the core functionality to process this correctly. This is an inherent flaw in the design of the software. The overpaid social security tax should be reported on 1040 Schedule 3, line 11, and added to my total refund. Because the Turbotax software is not designed to report this correctly, I am forced to file an additional form 843 with the IRS to receive this refund. This violates the Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back. Please refund my payment 100%.
- Maximum Refund Guarantee / Maximum Tax Savings Guarantee - or Your Money Back: If you get a larger refund or smaller tax due from another tax preparation method, we'll refund the applicable TurboTax federal and/or state purchase price paid. (TurboTax Online Free Edition customers are entitled to payment of $30.) Limitations apply. Excludes TurboTax Business products and services. See Terms of Service for details.
