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smh9622
New Member

Why did Turbo Tax remove the ability for filers to claim over withheld Social Security taxes when the employer is an agent under Rev. Proc. 70-6? Schedule 3, line 11

Turbo Tax used to allow filers to claim this credit but would issue an alert (saying please confirm this over withheld amount should not be refunded by the employer), but if alert was ignored, they still allowed filer to claim the credit.  They no longer offer this ability because they only see the FEIN in Box B as the same on both W2s. It is an IRS approved agent after filing Form 2678 "Employer Appoint of Agent" and employer receives LTR 1997 approval. 

Furthermore, per the IRS instructions, "If the agent (a) is acting as an agent for two or more employers or is an employer and is acting as an agent for another employer, and (b) pays social security wages to an individual on behalf of more than one employer, the agent should file separate Forms W-2 for the affected employee reflecting the wages paid by each employer. Each Form W-2 should reflect the EIN of the agent in box b”

Assistance is needed on how this over withholding can be claimed on Schedule 3, Line 11.
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1 Reply

Why did Turbo Tax remove the ability for filers to claim over withheld Social Security taxes when the employer is an agent under Rev. Proc. 70-6? Schedule 3, line 11

I "think" they removed it because too many people were double-entering their W-2 forms, or some such problem....causing too many mis-filed tax returns.  But that's a wild guess.

 

The problem can be bypassed, but only by people using the Desktop software, where, after they have fully entered both W-2 forms, they can enter the proper overpayment $$ in the desktop software's Forms Mode. (((( ...on the 1040 worksheet, down in the Schedule 3 worksheet area)))

(don't know if this will prevent e-filing or not...doesn't seem to cause an error in my test file with the same situation.)

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____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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