What is excess social security and tier 1 RRTA tax withheld

Forum|Forum|5 years ago
March 3, 2021
30 replies
180 views

Was my social security withheld not applied to my taxes

TurboTax Live Deluxe Online

ReneeM7122

Level 9

Excess social security and Tier 1 RRTA tax withheld means that you overpaid on the amount of Social Security from your paychecks. This usually occurs when you change jobs or work multiple jobs. Look at box 3 from your W-2s. If they add up to more than $132,900, then you overpaid and it will be credited to you on your tax return. You will see it on line 18 (d) if your return.

vptltrbtx

Level 2

I did not find this on line 18 on my 1040. Does Turbo Tax 2021 software include this module to apply for such excess social security refund? Thanks.

VolvoGirl

Level 15

Yes, If you paid excess Social Security Tax it will be automatically calculated. You don't enter anything. Just enter all your W2s. If you had more than 1 employer and paid more than the max SS in box 4 you get it back. And it is for each spouse separately, not combined. For 2021 it will be on Schedule 3 line 11 which goes to 1040 line 31.

Before filing you can preview the 1040 or print the whole return. You have to pay any fees first before you can see all the forms, etc.
https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

VolvoGirl

Level 15

I don't know about RRTA tax but for excess Social Security.....Did you have 1 employer or more?

One Employer:

Try leaving the cents off box 4.

Check boxes 3 & 4 on your W2. Box 4 should be 6.2% of box 3 up to a max of $8,537.40. So take the amount in box 3 and multiply it by .062. If box 4 is more than that you need to get a corrected W2 from your employer. But also go back and double check your W2 entries, you may have entered box 3 & 4 wrong. A lot of people who have asked this found they did enter an amount wrong.

Or check W2 box 12. You may have entered Code A by mistake.

A sure way to fix this is to delete the W2 and re-enter it. That may clear something out.

Or post back with the amounts in boxes 3&4.

jmjmcgriff

Level 2

Using this formula (box 3 x .062), we did not overpay. Yet TurboTax says we did and now the IRS is making us pay it back. One of us received unemployment benefits in 2021; could this have caused the discrepancy? Bottom line: we (obviously) do NOT want to pay the IRS any additional money if we don't owe.

VolvoGirl

Level 15

@jmjmcgriff No it's only based on W2s box 4. Did you both have a W2? You entered both W2s under the same person so it looked like that person went over the max.

You only get excess SS back if one person had more than 1 employer and those employers took out more than the max of $8,853.60. So add up your W2 box 4. Is it more? Then add up your spouse's W2 box 4. Is their box 4 more than $8,853.60?

Or check W2 box 12. You may have entered Code A by mistake.

THEN for next year 2022 if you transfer over from 2021 you should delete ALL the W2s and re-enter them from scratch making sure to assign them to the right spouse.