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aneunaugen
New Member

Should my social security tax be 0.00 instead of what was paid, or is this an error?

My income was 39300 and approx. 2300 was withheld. According to Turbo tax this was incorrect.
5 Replies
DianeW777
Employee Tax Expert

Should my social security tax be 0.00 instead of what was paid, or is this an error?

No, it should not be zero. The social security tax based on your income should be $2,436.60 ($39,300 x .062); and your Medicare tax should be $569.85 ($39,300 x 0145).

 

Since the amount is low, you should contact your employer to be sure your W-2 is correct.  This may be the reason TurboTax is indicating the amount is incorrect. I have not experienced this with this entry in TurboTax.

SteamTrain
Level 15

Should my social security tax be 0.00 instead of what was paid, or is this an error?

...BUT...if you are entering your W-2 information....but don't have your ACTUAL W-2 yet  (most likely you don't have it yet ) ....you need to wait for that form.

 

Sometimes, employees have pre-tax deductions from their wages that reduces box 1 and box 3 values on the W-2....so your winging-it with your paystubs could be way off from what the actual form boxes will display.

___________________________

Unless, you are not talking about W-2 income and need to clarify exactly what you are referring to ??

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

Should my social security tax be 0.00 instead of what was paid, or is this an error?

Ah that makes sense. I haven’t gotten my w2 yet do I’ll wait for it before filing

thank you!

aneunaugen
New Member

Should my social security tax be 0.00 instead of what was paid, or is this an error?

Ok thank you! I haven’t gotten my w2s yet and was attempting to get a head start with paystub info. I’ll wait and see what the actual w2 says. Thanks again

Opus 17
Level 15

Should my social security tax be 0.00 instead of what was paid, or is this an error?


@aneunaugen wrote:

Ok thank you! I haven’t gotten my w2s yet and was attempting to get a head start with paystub info. I’ll wait and see what the actual w2 says. Thanks again


Social security is 6.2% and Medicare is 1.45%.  Some employers combine these into a single line at 7.65%, which is one of the reasons that it is hard to guess what your W-2 will be from your pay stub.

 

Also, sometimes your W-2 taxable box 1 income can be different from your box 3 income subject to social security.  For example, if you participate in a pre-tax retirement plan like a 401(k), that money is not subject to income tax but is subject to social security tax.  Other deductions, like medical insurance premiums, are subtracted from both your box 1 wages and your box 3 social security income.  Unless you really understand the laws and your pay stub, it's hard to anticipate your W-2 accurately.

 

After you get your W-2, and compare it with your pay stub, we can help you understand the differences, or you can ask your employer to explain.  

 

Lastly, if your SS withholding is $2300, that would mean your SS income is about $37,100.  If your gross pay is $39,300, then you probably have $2,200 of pre-tax payroll deductions like medical insurance, medical FSA, dependent care FSA, or something else. 

 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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