I'm prompted too much social security tax was taken from my pay. I see this could be an adjustment on Schedule 3 for Form 1040 but it's not generating.

[lisamatteen-gmai]

I saw a post saying excess Social Security Tax can be refunded and it would auto reduce from the amount of taxes due, but there isn't a Schedule 3 in my list of documents being generated. Has anyone experienced this issue?

[AnnetteB6]

The excess Social Security tax is automatically refunded as part of your tax return in the case where you had mulitple employers during the year.

If too much was withheld from a single employer, then there are steps you need to take to have the excess refunded.

Take a look at the following TurboTax help article for more details and instructions:

Can I get a refund for excess Social Security tax withheld?
 

[lisamatteen-gmai]

Thank you. My question isn’t about the process. Rather, I’ve entered all my tax information after being told I was overpaid social security between 2 employers and the software is not generating a Schedule 3 to address the overpayment.  I also don’t see how I can manual trigger it to do the credit in the software. 

[lisamatteen-gmai]

The help/support info says it will automatically do it but it’s not doing it for me?  The desktop software is not generating a Schedule 3, despite alerting me I overpaid into social security. I reviewed all the generated forms and schedules but there isn’t a schedule 3.  How do you get the schedule included if it’s not auto? 

Help/Support says: 

The excess will appear as a tax credit on Line 11 of your Form 1040, Schedule 3.

[MarilynG1]

Yes, you should see the amount of Excess Social Security on Schedule 3, Line 11.  

If you don't have a Schedule 3 in your list of Forms in My Return, click on 'Open Form' and type in 'Schedule 3'.  

Choose 'Create Form' if Schedule 3 does not appear.

This links to your W2/W2G Summary, and ends up showing as a tax payment on Form 1040, Line 18.

Here's more info on Excess Social Security Withheld. 

@lisamatteen-gmai 

[lisamatteen-gmai]

Thank you, Marilyn. I followed your instructions to open form and typed in Schedule 3. 

I’m not seeing any dollar amount in Schedule 3, Part II, line 11. Should the overpayment show there first? 

Then when I look at Line 18 on Form 1040, I can’t tell if the overpayment reduced the taxes due as it’s not broken out. 

[MarilynG1]

Yes, the overpayment should show on Schedule 3.  Check the amount of Social Security withheld by your employers on your W2/W2G Summary; is the total over $9,932?

If so, and TurboTax told you the excess amount, you could try entering it yourself on Line 11.  Some users had issues with the excess reporting correctly if the employers were linked. 

Here's more info on Refund for Excess SS and more user discussion on Multiple W-2's and Excess SS. 

[VolvoGirl]

Let me back up.  One thing schedule C line 11 goes to 1040 line 31  (not  18).   Now, do you have more than 1 employer?   Are you married?  First make sure each W2 is assigned to the right spouse if married.  The excess SS is for one person.   

Is it saying you had too much SS taken out or that 1 employer took out too much?  There are 2 different situations when it will say Employer may have paid too much Social Security. It’s saying either 1 employer took out too much SS –OR- that you paid too much SS because you had more than 1 employer. 

For 2023, If you had more than 1 employer and paid more than $9,932.40 in Social Security tax (box 4) combined you get the excess back on your tax return. If you are married it is for each spouse separately. Be sure each W2 is assigned to the right spouse. For 2023 it will be on Schedule 3 line 11 which goes to 1040 line 31. The Social Security overpayment on line 31 is included in the total refund on line 35a or reduces a Tax Due on line 37.

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 $9,932.40. Even one penny over from rounding will be excess. So leave off the cents! Or post back with the amounts in boxes 3&4.

Or check W2 box 12. You may have entered Code A by mistake.

A sure way to fix this is to delete the W2 and re-enter it. That may clear something out.

[lisamatteen-gmai]

My main employer too maximum amount out for social security. My extra job, different employer, then took out $80.01. 

I don’t see a summary form for W2’s in the Forms in my Return section. Also, I only see the Schedule 3 form when I select Open Forms. It doesn’t move over to the Forms in my Return section. 

I’m unable to edit Schedule 3 to add the $80.01 to line 11.

I really appreciate your help. It seems like I’m stuck. The software gives me this large warning message when I entered the two w2’s saying I overpaid but then it seems it can’t link that to any other part of my return. 

[VolvoGirl · Accepted solution]

I would delete the W2s and enter them again manually.  That usually clears something out and fixes it.  How much is in box 4 on each W2?  Leave off the cents.  Make sure each box 4  equals box 3 x .062.

Are you using the Online version or the Desktop program?  

[lisamatteen-gmai]

VolvoGirl

Thanks for responding. 

I verified all the numbers on the W2 as you instructed and they looked correct. Each box was entered correctly into TurboTax too. 

So as you instructed, I deleted both of my W2’s. It alerted with a new message describing I was due the $80! Hooray! I would have never thought to delete and re-enter the W2’s.

Thanks again!