DianeW777
Expert Alumni

Retirement tax questions

You did not defer anything.  Your employer was allowed to defer this tax last year.

Check the amounts in box 3 of your W-2 and the amount in box 4.  Box 4 should be 6.2% of Box 3. 

 

Review the IRS Notice 2020-65 which explains more about this topic. This does not affect your tax return, only your social security account. For most employees no action is required.

 

To Employers

If you deferred the employee portion of Social Security tax under Notice 2020-65, when reporting total Social Security wages paid to an employee on Form W-2, Wage and Tax Statement, include any wages for which you deferred withholding and payment of employee Social Security tax in box 3 (Social security wages) and/or box 7 (Social security tips). However, do not include in box 4 (Social security tax withheld) any amount of deferred employee Social Security tax that has not been withheld.

 

To Employees:

If you had only one employer during 2020 and your Form W-2c, Corrected Wages and Tax Statement, for 2020 (if you get one later), only shows a correction to box 4 (or to box 14 for employees who pay RRTA tax) to account for employee Social Security (or Tier 1 RRTA tax) that was deferred in 2020 and withheld in 2021 pursuant to Notice 2020-65, no further steps are required. 

 

@raysim52

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