Excess social security tax withheld not getting added to federal refund

[nbsnathan]

TT indicated there was excess SS tax withheld due to multiple employers. It also finally calculated the amount that was in excess and mentioned it will add it to my federal refund. However when I completed my review the refund amount did not increase by the excess SS tax refund.
Can you please clarify?
Thanks

[MinhT · Accepted solution]

You can check whether this credit is on your form 1040 by previewing form 1040. Please follow these steps:

• In TurboTax, open your return
• In the left-hand column, locate Tax Tools, click on the drop-down arrow then click on Tools
• On the Tools Center page, click on View Tax Summary
• In the left-hand column, click on Preview my 1040
• Your form 1040 will display.
• Scroll down to line 72 and you should see the amount of the excess social security withheld

[rjs]

The excess Social Security tax was added to your refund as soon as you entered your W-2s. By the time you saw the message saying that it would be added, it had already been added. If it's on Schedule 5 line 72 it is being added. Follow the instructions that TurboTaxMinhT gave you to check.

[VolvoGirl]

Just for more info.....If you had more than one employer and  the total of box 4 (only box 4 not box 6) on all your 2018 W2s  for Social Security is more than $7,960.80 you get the excess back on your tax return.  And it is for each spouse separately, not combined.  Check 1040 Schedule 5 line 72 for it.  Then Schedule 5 goes to 1040 line 17.

[nbsnathan]

Thanks rjs & VolvoGirl

[ek6543]

I no longer see Line 72 on the preview. Do you have an updated instruction?

[BillM223]

@ek6543

Those instructions were for tax year 2018. The IRS subsequently changed those forms.

Line 72 on Schedule 5 in tax year 2018 is now line 11 on Schedule 3 (1040) in tax year 2019.

[passingthru]

This is my exact situation and after reading thru the response it is still not clear.  I see for this tax year Line 10 on my 1040 a value of overpaying due to more than 1 employer.  However, the total refund at the top of TT does not reflect this number, significantly lower.  I am unsure if this is telling me I owed tax and it took from the refund amount or it simply isn't including the SSN overpayment refund due.

Any help in clarifying this is much appreciated as I have not submitted my refund because of this.

Thank you!

[VolvoGirl]

For 2020.  Check 1040 Schedule 3 line 10 for it.  Then Schedule 3 goes to 1040 line 31.

If you had more than 1 employer and paid more than $8,537.40 in social security tax (box 4) combined you get the excess back on your tax return.

Social Security is 6.2% of wages (W2 box 3) up to a max of $8,537.40 on $137,700 of wages.  Medicare is 1.45% on W2 box 5 no max.

Get a calculator and check each W2 box 3&4.  Multiply box 3 x .062 and it should be box 4.  The max for all box 4 combined (but only for each person) is $8,537.40.   Even one penny over from rounding will be excess.  So leave off the cents!  Or post back with the amounts in boxes 3&4.

A sure way to fix this is to delete the W2 and re-enter it.  That may clear something out. Or report back with the amounts in each box 3 and 4.

[passingthru]

Thank you Volvo Girl for the additional details.  Yes, I reach the max with my 2nd employer (changed employers early 2020).  So that amount is $8537.40 alone.  The 1st employer, (early 2020) is all excess, having paid over $1000  in addition to the $8537.40.

So, assuming I do not owe federal tax, all of the excess should be reflected in the Refund amount in TT, correct?  Feel like I am still missing something on this.  

As you recommended, I will go back and reenter my W2s if you think it will help.

Thank you again! 

[passingthru]

Thank you again!  I forgot about additional tax I needed to pay.  Once I went thru my 1040 and traced, everything worked out.