I received two W2 forms with same Employer ID, but different Pay Agents. Both withheld Social security taxes. How can I enter a credit for overpayment in Turbotax?

[albert15]

Already checked with company and they won't provide a corrected W2. They claim as they use different pay agents they can't due to IRS regulations and that I have to approach the IRS myself to get a refund.

[LoganathanB]

Yes, you can get excess Social Security tax refunded.

When you file an income tax return, the excess social security tax withheld will be treated as income taxes paid.

The excess will be either added to your federal refund or used to reduce the taxes you owe.

Click on the link for more information

[VolvoGirl]

That is a Common Payer situation.  Here is an old answer by RJS.  It may still work.......

In TurboTax, after you enter your W-2s you come to the W-2 summary screen that lists your W-2s, with the heading "Here's your W-2 info." When you click Done on that screen, you get a screen that says "We Noticed You Paid too much Social Security tax".  At the bottom of that screen it asks "Are these W-2s from different employers?" Since the "two legal entities" that you worked for are different employers, you should select "Yes, these are from different employers." It will then give you a box to enter the excess amount. You can just copy the amount that's shown near the top of the same screen.  Then click Continue.  Turbo Tax will put the excess amount on Form 1040 and it will be refunded to you.

[albert15]

Thank you for your response. Unfortunately this description doesn't seem to work anymore. I do get the warning that I overpaid (Screen title is "You may be due a refund from your employer"), however there is no option to select that they are from different employees. I can't seem to find a way to manually enter the overpayment as it assumes it is the same employer due to the same Employer ID number on the W2's even though there are 2 different Pay Agents. 

[albert15]

Thank you for your response. Unfortunately the link in your message doesn't solve the problem as all it does is state that I need to ask the employer  for a corrected W2, which I already know they will not do as there are 2 different pay agents and according to them what they do is compliant with IRS regulations. What the employer instructs me to do is put a credit on the proper line in my 1040 schedule 3. 

When I go into the 1040 document in Turbotax through Tools I find the following text that exactly describes my situation. I however can't figure out how to get the dollar amount entered in line A

Excess Social Security and Tier I RRTA Tax Withheld Smart Worksheet

The calculated amount for Excess social security and tier 1 RRTA tax withheld could include

a portion that needs to be removed. When a taxpayer has multiple W-2's, each with the same

EIN, excess withholding can only be claimed if the Employer's Name's in box c of the W-2's

reflect separate business entities. This could occur when a parent company has multiple

subsidiaries, or when a temp agency issues W-2's for distinctly different jobs. If you have

multiple W-2's with the same EIN, for the same taxpayer, and for the same job, reduce the

amount calculated on Line A below by the excess withholdings from only those W-2's.

A.     Total Excess Social Security or Tier I RRTA tax withheld claimed as a credit ____________

[DawnC · Accepted solution]

You have to request the difference back from the IRS directly.   Since the W-2s have the same EIN, TurboTax assumes the 2 employers are the same.   Use the instructions below to report the correct amount of maximum social security tax.   Then e-file your return and later submit the claim form to the IRS and they will refund the difference.    The instructions below are from this link if you need to refer back to it.   Excess withheld from a single employer:

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 $8,853.60 per taxpayer for tax year 2021.  If one employer withheld too much Social Security tax, you won't be able to take a credit for the excess on your tax return.   Max SS wages are $142,800 in 2021.  

Do not file with excess withholdings on your return, as you may be subjected to penalties and interest.   Since you know your employer is NOT going to issue the corrected form, adjust your current W-2s to reflect the correct amount and send Form 843 to the IRS once you have successfully e-filed.  

You can correct the Box 4 amount yourself before filing. Simply multiply the amount in Box 3 by a factor of 0.062 and enter that amount or 8,853.60 (whichever is less) in Box 4.   Reduce one of them so that the total of the two Box 4s are $8,853.60.

To get a refund for the excess withholding, fill out IRS Form 843: Claim for Refund and Request for Abatement according to the Form 843 Instructions and mail it in separately. Make a copy to keep with your tax return paperwork.    

The correction you described above will only work if the W-2s have different EIN numbers - and TurboTax automatically places the credit on Schedule 3 of Form 1040 in the case of multiple employers.   But it won't work if the EINs are the same.   Adjusting the amount in Box 4 will correct the withholdings - Form 843 will give you the credit.  

[albert15]

Thank you DawnC for this prompt response. I do understand that this process can work. I am however concerned that it is not aligned with the language in Turbotax that I found in the 1040 view which I copied in my post. There its states:

" If you have multiple W-2's with the same EIN, for the same taxpayer, and for the same job, reduce the

amount calculated on Line A below by the excess withholdings from only those W-2's.

A.     Total Excess Social Security or Tier I RRTA tax withheld claimed as a credit ____________"

Also, I received instructions from my employer that state the following: " ... you have the option available to you to claim a refund of this Excess FICA tax withholding by completing Schedule 3 and placing the amount of the excess FICA on appropriate line of form 1040." Additionally they recommend filing the return on paper and submit a "Pay Agent Statement" which they provided, clarifying the issue to the IRS. 

However even if I wanted to put the number in Line 11 of schedule 3, it sees not seem it is possible. 

Thank you for any clarity you could provide. 

[DaveF1006]

According to this Turbo Tax link and if this is a single employer, you won't be able to take a credit for the excess on your tax return. So, if your employer withheld too much, contact them and ask for:

1. A refund for the excess amount, and
2. A corrected W-2 (also called a W-2c) which shows the correct Box 3 and Box 4 amounts.

Do not file with excess withholdings on your return, as you may be subjected to penalties and interest.

As the article suggests, To get a refund for the excess withholding, fill out IRS Form 843: Claim for Refund and Request for Abatement according to the Form 843 Instructions and mail it in separately. Make a copy to keep with your tax return paperwork.

[albert15]

Thank you DaveF1006. Your response aligns with the one of DawnC, but unfortunately doesn't answer my question in a response to DawnC's post. 

[AmyC]

Social Security tax is 6.2% of the first $142,800. Any amount over that would be excess withholding. @DawnC gave complete information on what to do and  @DaveF1006 is correct that you are not able to file the excess on your return. You need to attach a copy of the Pay Agent Statement when you mail in IRS form 843. It is separate from your return. You should:

1. Correct your w2 withholding in Turbo Tax and efile your return.
2. You should mail in the IRS Form 843 with COPY of pay agent statement