I worked for the same employer for all of 2015, but I received two separate W-2's because I worked for two different lines of business during the year. As a result, my employer withheld too much social security tax for 2015. My employer will not issue me a corrected W-2. Instead, they informed me to make a manual entry adjustment to line 69 of Form 1040. I am unable to edit this field in form 1040 or on form 8962. How can I claim this credit within Turbo Tax (CD version) without submitting form 843?
There is a way to handle your situation in TurboTax.
First, the information that you received from your employer to edit line 69 of your Form 1040 is incorrect. The information reported on line 69 is not associated with excess social security withholdings. However, line 71 is.
Normally, if a person reaches the maximum amount of social security withholdings because of working for more than one employer, then you would have seen a message with regard to this at the end of the W-2 section of your return. The excess amount is automatically included on line 71 of Form 1040 and is added to other tax payments to reduce your tax liability. There is nothing that you need to do to have it applied.
But, in your situation I suspect that since you worked for two divisions of the same employer, the Federal ID number is the same on both W-2 forms and therefore TurboTax notified you that you should request a corrected W-2.
Follow these steps to fix this issue in your return:
On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
This opens a box where you can type in “W-2” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will give you an option to “Jump to early W-2”
Click on the blue “Jump to W-2” link
This will open your W-2 summary page, click Done
Next there should be a screen titled “We Noticed You Paid Too Much Social Security Tax” where it lists your employer and the amount of withholdings and excess withholdings
The question at the bottom of this screen asks “Are these W-2s from different employers?”
Answer Yes and a box will open, enter the excess withholdings
This excess will then be reported on line 71 of your Form 1040 and will be added to other tax payments to reduce your tax liability. Click on the thumbnail picture below for a visual reference of this screen.
These steps are essentially following the instructions from your employer, only making it apply to the correct line of the tax return.
To look at your Form 1040 to verify line 71, use these steps:
Click the Forms button in the upper right corner of your screen.
Highlight the Form 1040 (or Form 1040A, or Form 1040EZ) shown in the list on the left side of your screen.
Click Step-by-Step in the upper right corner of your screen to return to where you were.
For TurboTax online users, use these steps to verify line 71:
Go to the top of your screen and click My Account.
Select Tools from the drop-down menu.
Choose View Tax Summary, just below the 4 blue buttons.
On the Review Tax Summary page, click the link near the top of the screen that says Preview my 1040.
Use the Back link at the top of the screen to return to where you were.