My husband now works for a school district that doesn’t withdrawal soc sec and retirement doesn’t draw from soc sec How is that noted on my tax return so I don’t overpay?

[dbrown373]

Can I amend my returns?  I have seen a marked increase in my taxes since he started working at this district due to not taking out soc sec.  I think I’m missing something that would make his wages exempt from soc sec taxes.

[xmasbaby0 · Accepted solution]

There are many teachers who do not pay in to Social Security; instead they pay into a teacher's retirement system.   All you need to do is enter his W-2 exactly as it appears.  You do not enter anything for SS if nothing was withheld by the school district.   The money he is paying in to a retirement system is in a different box (probably box 12) on his W-2.  Just enter the W-2 boxes exactly as they are.

Teachers and Social Security

There are 15 states (AK, CA, CO, CT, IL, LA, MA, ME, MO, NV, OH, TX) in which teachers do not pay in to Social Security, so you will not see Social Security withheld on the teacher’s W-2.  Instead, teachers in those states pay in to a Teacher’s Retirement System, which will show up elsewhere on the W-2 often in box 12 or box 14.

There are three states which have varying degrees of participation in SS for teachers, depending on school districts—GA, KY, and RI.

Why Does Social Security Leave Out Teachers in These 15 States?

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However, some state government employees, including teachers, don't pay Social Security payroll taxes and aren't entitled to retirement benefits from Social Security. The history of this practice dates all the way back to Social Security's formation, when the law was intended to cover only private employees. At the time, it wasn't clear whether the federal government could force states to pay payroll taxes. Only in the 1950s did the rules change, allowing states to have the ability to join Social Security.

The majority of states elected to enroll their government workers in Social Security. At that point, those workers started paying payroll taxes, and they earned their retirement benefits in the same way as any other worker.

However, not every state participated. Now teachers in 12 states -- Alaska, California, Colorado, Connecticut, Illinois, Louisiana, Maine, Massachusetts, Missouri, Nevada, Ohio, and Texas -- don't have coverage arrangements with Social Security. In addition, three other states -- Georgia, Kentucky, and Rhode Island -- have varying degrees of coverage that differ by school district.

[VolvoGirl]

Does he get a W2 or a 1099Misc from the school district?  Even if they did hold out Social Security it wouldn't change your return.  And he get retirement pay?  You might want to increase his withholding at work or from his retirement.