“Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2022”

[jmunroe21]

Turbo Tax inserted 147,000$, im not sure why. Could anyone help with this question? Is this correct? Not sure how it got that number. Thank you in advance

[MinhT1]

This is the amount fixed by the law for 2022.

The maximum amount of wages and self-employed income subject to SS tax is $147.000 for 2022.

If you have paid SS tax on more than this amount, you are entitled to a credit or refund.

Please read this Social Security document for more information.

[jmunroe21]

Thank you for the response! But I believe when I completed my state NJ 1040 using turbo tax it put 147,000$ under line 7 on the 1040 when asking about the railroad retirement , but this might have been a mistake on my part. I’m sure I never paid that amount with what you stated (S.S etc..) will this mistake be a problem and result in my State NJ refund to be rejected while while being processed? 

[DawnC]

It depends.  The 147,000 social security wage limit is automatically applied, but I am not sure which Form 1040, other forms, or worksheet you are referring to when you referenced line 7, which is:

• Capital gains on the federal 1040
• Age exemption, max $2000 on the NJ 1040

Your employer is supposed to withhold 6.2% of your Social Security Wages (the Box 3 amount on your W-2), up to a maximum of $9,114.00 per taxpayer for the tax year 2022.   Did you enter your w-2s / 1099-r forms as they appear or did you make adjustments?    View a copy of your tax return to double-check.  

You may need to amend if there really is a mistake.   But once accepted, your return will be processed.   They may adjust your refund amount if you entered something different than what was on your tax forms.   But if you entered the same amounts from your forms in TurboTax, it is unlikely there is a mistake or problem to correct.   

[VolvoGirl]

The 147,000 on Schedule SE line 7 is a preprinted amount.  It's just the max you have to pay Social Security tax on.  See it's even on the blank IRS form,

https://www.irs.gov/pub/irs-pdf/f1040sse.pdf 

[jmunroe21]

Ah I see!! Thank you so much for taking the time to respond. I feel at ease now knowing this is an automatic input and not a mistake on my part! Thanks a million to all the reply’s as well 🙏🙏