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New Member
posted Mar 6, 2021 9:55:54 AM

Are social security tips used as well as social security wages to calculate social security tax withheld?

My employer used both and Turbo tax says I am owed a refund.

0 3 668
3 Replies
Expert Alumni
Mar 9, 2021 3:02:05 PM

Yes.  Your tip income would be reported in box 1,5, and 7 on your W2.  Box 3 would only include your Social Security Wages.  The amount in box 4 would be the Social Security taxes due on your Social Security wages and your Social Security tips.  The total of boxes 5 plus 7 would be your Social Security base for determining the amount of Social Security taxes withheld.  The amount in box 4 for Social Security tax withheld would be 6.2% of the total for box 5 and box 7.

 

You can check this out on a calculator to see if the amount in box 4 is correct.  If it is correct, you can continue through the warning and complete your return.

New Member
Mar 6, 2022 8:33:34 PM

I am as well having turbo tax claim one employer took too much and I should have a refund, but they took 6.2% of my total wages and tips.  So I’m confused. 

Level 15
Mar 6, 2022 8:38:44 PM

Check boxes 3 & 4.  How much is in each box?  Box 4 should be Box 3 x .062 up to a max of 8,853.60.   If box 4 is more than that you need to get a corrected W2 from your employer.  Try leaving the cents off box 4.  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.