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New Member
posted Jan 28, 2020 11:34:23 PM

I am showing a social Excess social security and tier 1 RRTA tax withheld on my 1040 but I didn't enter it. Where is this coming from?

0 3 2213
3 Replies
Expert Alumni
Jan 29, 2020 2:08:24 PM

The most common reason is that you worked multiple jobs, or changed jobs. 

 

Each employer calculates Social Security independently. If you earned more than $132,900 combined from BOX 3 if all your W-2 you will have overpaid.

 

This is not a problem.  It will be credited to you on your tax return on line 18 (d) of your Individual Tax Return.

Level 1
Feb 1, 2020 5:53:04 PM

I think TurboTax is incorrectly calculating Tier 1 tax. 

 

We paid the full 8239.79 as required

TurboTax calculated that we should have paid only $0.00 - clearly incorrect

TurboTax says our excess withheld is 8239.79

 

Please Fix TurboTax!

Level 1
Feb 1, 2020 8:35:55 PM

RAILROADERS:

 

Just spent an hour and a half on tax support:

 

If you have excess Tier 1 tax paid because of more than one railroad job, we had to do the following to resolve TurboTax problems with calculating excess Tier 1 Tax and applying the credit to the 1040:

 

For both W-2s, Make sure you enter RRT1, RRT2 and MED in the same order in box 14 on TurboTax (each box 14 line should be the same on each W-2 (Line one for RRT1, Line 2 RRT2 and Line 3 MED in TurboTax).

 

After you get all your box 14 items from each W-2 into the proper order on TurboTax, ADD A LINE UNDER THOSE and write "RAILROAD COMPENSATION".  In the $ amount box put your box 1 wages from your W-2 and then select Railroad compensation in the pull down menu.  TurboTax will then correctly add up how much Tier 1 tax is due, then tell you what you properly overpaid, and then put a schedule 3 in your tax forms and give you the proper $ credit to this year's taxes.  You would still have to file a form 843 for excess Tier 2 tax if you paid that.  

 

We never had to do this in TurboTax before.  I don't know if it is a glitch or a feature, but it is not well done on TurboTax's part.

 

Hope this helps.  It worked for us.