TT notes a railroad tax on a 1099R, box 14 although the 1099R was entered with a bland box 14. Programming error in TT?

[JohnB5677]

Please clarify your question.

• Box 14 of the 1099-R is State tax withheld.
• Please verify the Form you are looking at.
  • Box 14 of the W-2.  Enter the dollar amount and select the correct tax category that goes with that description.
  • Box 14 on 1099-MISC is Excess GP Payments
• Please confirm that you posted it as it shows on the tax form.

Give any other detail to describe where you see the discrepancy.

[emusen]

Correction: this does refer to one of our W-2s that has a blank box 14.  after entering all W2s and clicking "done" with W-2s, a screen appears that says "You may be due a refund from your employer

Double-check the railroad tax withheld to make sure we've got the right amounts. Select Back to make any changes to your forms.

It lists the employer with unfamiliar amounts under each column.  We have nothing to do with railroad tax.
Box 14 - Railroad Tax Correct Withholding Amount

[DianeW777]

It sounds like TurboTax is asking you to check your social security and medicare tax amounts on the W-2 (or Railroad equivalent if your W-2 is from the Railroad).

If you had only one employer, then you would have to get the excess social security tax withholding back from your employer.  The employer reports and payments are based on math and not actual withholding so it's impossible for your employer to pay more to the IRS than is required. In this situation you must go back to the employer to receive a refund and a corrected W-2. For filing purposes, You can enter the correct amount of social security tax and proceed to to file now. It's important to follow up with your employer.

If you do have two different employers, then the employers do not have access to the information about each other in reference to your income. For this reason they would not pay too much FICA on your wages.  In this case, any excess because you have earned more than $142,800 in wages when combined, the IRS will refund any excess social security tax because each employer would have paid it all to them.

On your tax return the excess will show up on line 11, of Schedule 3, Form 1040.  You can view your 1040 form before you e-file:

1. Open or continue your return. (TurboTax Online)
2. With the Tax Tools menu open, you can then:
   • View only your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu.
3. TurboTax CD/Desktop - Select Forms (upper right) > Scroll to Schedule 3 (left) > View line 11

Please comment here if you need further assistance,.

[emusen]

Thank you, but the SS tax on imputed income is entered on schedule 2 by TT, but because of multiple employers that paid the maximum income subject to SS tax,  that SS tax is not really owed.  Schedule 3 no longer subtracts that SS tax out.  TT used to subtract it back out, but it no longer does.  Why?

[MarilynG1]

If you had excess Social Security tax withheld on your W-2's due to multiple employers, you can get this refunded to you.

For tax year 2021, you'll have excess Social Security withholdings if the sum of multiple employers' withholdings exceeds $8,853.60 per taxpayer.

The excess will appear as a tax credit on Line 11 of your Form 1040, Schedule 3.

If you don't see this in your return, and you're using TurboTax Online, try closing the program, clear your Cache and Cookies and step through your W-2 entries again.

Click this link for more info on Excess Social Security Tax Withheld. 

[Edited 03/29/2022 11:28 am]