Earlier I saw an error with social security taxes, it said that I over-payed and I should have my employer refund me and reissue a new W2. Now I can't relocate that info

Forum|Forum|7 years ago
June 3, 2019
2 replies
33 views

If I am unable to find that message within my TurboTax account, I would at least like the proper info (i.e. which boxes on W-2) on how to calculate the amount that I should have been charged for social security, so that I may accurately explain this info to my employer

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First and Foremost, you must not file your Tax Return with this excess amount if you only have one W2. If you file your return with incorrect numbers you could be subjected to Penalties and Interest. Second, you must determine the correct amount that should have been withheld, 6.2% or the amount in Box 3. This can be done by Multiplying the amount in Box 3 by the .062. The lesser of the two amounts, $7347 or 6.2% of Box 3, will be the correct amount that should reflect as Social Security withholding on your W2 (box 4).

Now that you have crunched the numbers and know what you are aiming for, it is time to shoot for the solution.

You can approach your employer and request a refund for the overage on your Social Security withholding. In addition to requesting this refund, your employer must provide you with a corrected W2 labeled W2-C. When you receive the W2-C confirm that the your income subject to Social Security Withholding (box 3) and the updated withholding (box 4) are correct.
If you employer will not cooperate and refuses to return the money that was erroneously withheld, as well as provide a corrected W2 you can still file your return but must take a few extra steps. In order to file your return and avoid Penalties for entering incorrect amounts you will:

In TurboTax enter the correct amount that you calculated above; lesser of $7347 or 6.2% of Box 3, in Box 4 of the W2 income section of your return.
Prepare and mail form 843 Claim for Refund and Request for Abatement to the IRS. It is advisable that you mail this form right before you e-file your tax return.

Below is the Link to Form 843 and Instructions:

Instructions: https://www.irs.gov/pub/irs-pdf/i843.pdf

Form 843: https://www.irs.gov/pub/irs-pdf/f843.pdf

Anonymous

Answer

Now that you have crunched the numbers and know what you are aiming for, it is time to shoot for the solution.

You can approach your employer and request a refund for the overage on your Social Security withholding. In addition to requesting this refund, your employer must provide you with a corrected W2 labeled W2-C. When you receive the W2-C confirm that the your income subject to Social Security Withholding (box 3) and the updated withholding (box 4) are correct.
If you employer will not cooperate and refuses to return the money that was erroneously withheld, as well as provide a corrected W2 you can still file your return but must take a few extra steps. In order to file your return and avoid Penalties for entering incorrect amounts you will:

In TurboTax enter the correct amount that you calculated above; lesser of $7347 or 6.2% of Box 3, in Box 4 of the W2 income section of your return.
Prepare and mail form 843 Claim for Refund and Request for Abatement to the IRS. It is advisable that you mail this form right before you e-file your tax return.

Below is the Link to Form 843 and Instructions:

Instructions: https://www.irs.gov/pub/irs-pdf/i843.pdf

Form 843: https://www.irs.gov/pub/irs-pdf/f843.pdf

reneelguyerAuthor

Level 2

Thank-you, Jaime! This answer was super helpful!

Just wanted to follow up a little before approaching my employer .... would there be any circumstances in which these figures would vary? I am a waitress and so nearly all of my income comes from tips. I don't know if that would somehow change what the W2 would reflect. My current W2 has box 4 reflecting 6.2% of box 1, which is far more than 6.2% of box 3.
I have checked my previous W2's with this company, and all reflect the same figures; i.e. box 4 being 6.2% of box 1 & in all years I have never gotten this error message from TurboTax. Is it possible that all of my W2's are incorrect? & of so, would I be able to seek repayment for previous years? Or is it possible that these figures are accurate for one reason or another?

I appreciate your time and advice!

kenrussell3

Level 2

BE CAREFUL!!!! I got the same message and found that the W2 Social Security amount was CORRECT at exactly 6.2%. Turbo Tax was incorrect in its calculation. There was no need to contact the employer for a refund or corrected W2. By the way, I am a former IRS Tax Examiner.

tjhudson

Level 2

I have the same problem today. The amount my employer withheld was correct and exactly 6.2% of the income in Box 1. Somehow, TurboTax is calculating this incorrectly. What am I supposed to do? Should I just ignore the "error" and continue to file? Will TurboTax even allow me to file? This is a surprising error, but apparently not a new one for TurboTax.

JamesG1

Level 15

Social Security tax withheld (box 4) is computed against Social Security wages in (box 3). Do you arrive at a different calculation in that event?

If you find that box 4 is incorrect, you would want to pursue requesting a refund from your employer and a corrected W-2.

If the employer will not cooperate and refuses to return the money that was erroneously withheld or generate a corrected W2, you can still file your return. In order to file your return and avoid penalties for entering incorrect amounts you will:

In TurboTax, enter the correct amount that you calculated above; lesser of $8,537 or 6.2% of Box 3, in Box 4 of the W2 income section of your return.
Prepare and mail form 843 Claim for Refund and Request for Abatement to the IRS. It is advisable that you mail this form right before you e-file your tax return.

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