Both my wife and I (file jointly) had the maximum social security tax of $8537 withheld from our paychecks for a total of $17075. Did we overpay by $8537? Refund?

[xmasbaby0]

No you did not---If you are seeing on your Form 1040 that you overpaid  Social Security by that much, then get busy and check to see if you entered all of your income under only one spouse's name.  That error will lead to an inflated refund and a nasty letter from the IRS in about a year asking for repayment of the refund with penalties and interest.

When you file a joint return, there are spots on the income screens with each spouse's name by them.  You have to be very careful to enter your W-2's under the correct spouse's name.  Go back through the screens for Federal>Wages and Income and see what you did--make corrections as needed.

[xmasbaby0]

And...the maximum amount for Social Security for a 2019 return is  $8239.80  for an individual.  If you each had more than that amount withheld, then the difference is how much should be added to your refund--or if a single employer withheld too much you have to resolve it with the employer.

[VolvoGirl]

For 2020 the max is $8,537.40 on $137,700 of wages.

For 2019 the max Social Security Tax (W2 box 4) for each spouse is $8,239.80 on 132,900 of wages.  Check 1040 Schedule 3 line 11 for it.  Then Schedule 3 goes to 1040 line 18d.

[gfunk1086]

Thanks. Is that wages for married filing jointly though? Said another way, let's say we each earn $150,000 for a total between us of $300,000. Is the maximum tax $8,537 on that $300,000 or is it $17,075 which reflects two $8,537 tax liabilities on two incomes reaching the max amount.

For our paychecks we elect, "married but withhold at single rate"?

[rjs]

The maximum Social Security tax applies to each person individually. It is not a total for the tax return.

[VolvoGirl]

No.  You don't COMBINE them.  The max is PER PERSON.  Add up each spouse's W2 box 4 separately.  Each person has a max of $8,239.80.  Not together.

If you are filing a joint return and both spouses have W2s you have to enter each W2 under the right name or it will look like all the W2s belong to only 1 person and too much social security tax was paid for that 1 person.   And by assigning both W2s to the same person the program wouldn't know a W2 is missing from the spouse. It just would think they are both for you.

[SteamTrain]

---

@gfunk1086 wrote:

........

For our paychecks we elect, "married but withhold at single rate"?

---

____________

.......that particular paycheck setting on your W-4 forms has no effect on your Social  Security taxes withheld and shown in box 4 of your W-2.   The Social Security tax is a flat 6.2% of box 3  (until it reaches the max $$ amount for the particular tax year involved).

That setting (married but withhold at single rate)  only affects W-2, box 2 federal  tax withholding for "income" taxes.

[macuser_22]

Social Security withholding is individual for each spouse separately and has NOTHING to do with a tax return at all as long as each is within the maximum limits.     Your filing status is irrelevant.    Just be sure that each spouses W-2 is entered for that spouse and both are not improperly entered for the same spouse.