I started receiving these in July, and from July to Oct 100% of the gross was deducted and paid for FICA according to the plan schedule. Hoping I can deduct them.
FICA contributions are taxes for Social Security and Medicare which are not deductible or refundable.
Is there an annual maximum on this tax? Like there is on wages. My wages exceeded the max and i paid this on top of that.
Also it didnt seem like the fica portion paid should be included in my AGI and be subject to income tax.
What form do you have? Pensions are reported on a 1099-R form not a W-2 (wages are reported on a W-2).
I received a w-2 with the gross amount in box 1 and box 11, as it's a nonqualified pension plan. I double checked with the fund manager and they confirmed that I received the correct form and only those boxes, with no deductions. They sent me a separate letter that has the monthly deduction paid.
Does the letter report the deductions for both social security and Medicare? if so, you can report this in Boxes 4 & 6 of the W2. Hopefully the letter will have a breakdown for both. if it is one FICA amount, you may need to contact the fund manager for the breakdown.
This should have been reported on a 1099-R.
Deferred compensation reported in box 11 on a W-2 may or may not be subject to FICA tax withholding.
See this article:
https://www.thetaxadviser.com/issues/2014/oct/tax-clinic-01.html
You should talk to the plan administrator.
The letter doesn't break it down. It just says FICA tax, and had a monthly schedule until a designated amount was paid. But now I think I figured out what they did. In addition to this W2, I received a W2 for the income while I was employed (through June). Looks like the FICA tax that I paid is included on that W2 (confusing).