It depends on the type of social security overpayment. There are two types of social security overpayments, so I will address both - but if TurboTax is allowing you to proceed without correcting your W2, then it is probably the first option.
1. If your social security overpayment is because of multiple employers, then when you enter your W2s, the program will warn of the overpayment and will add into your federal tax return automatically. It will show as Line 71 as a payment and be calculated into Line 75 (your refund) or Line 78 (amount you owe). Again, this calculation would be done automatically after you entered your W2, so the amount of the overpayment should already be reflected in your amount due (or refund) just like regular W2 withholding.
If you haven't filed yet, then you can use the steps below to Preview your 1040 and view Line 71
However, make sure you are truly entitled to this overpayment. A lot of mistakes happen with this topic and they often result in IRS letters. If you are married filing joint, make sure that you have assigned your W2s to each spouse correctly. The mistake that happens is users enter both W2s under the same name, instead of each spouse. This results in the program calculating an overpayment when none is truly due.
2. If your overpayment is from a single employer, then it will not be automatically added to your return. You will have to contact your employer to receive a refund and get a corrected W2. If your employer won't cooperate, then you will have to fill out Form 843 to received a refund of the taxes and you will need to make an adjustment to your W2 to reflect what the correct number should have been. In this situation, TurboTax will warn you that your W2 is incorrect and will not allow you to proceed with the incorrect number - you either have to manually calculate the correct number or get a new W2 to proceed.
You can view more information about social security overpayments at the link below (including more information about if your overpayment is caused by a single employer and how to correct that) -
https://ttlc.intuit.com/questions/1899484-can-i-get-a-refund-for-excess-social-security-tax-withheld
I am using premier online version for tax return 2019. The overpaid fica tax was not added to my 1040. Is there any button I need to check?
do you have a spouse and you accidentally clicked that the W-2 was your's and not the spouses? this is common errors people make.
overpaying FICA could occur if you had more than one employer and your Box 3 wages on your W-2s sum to more than $132,900
if your wages are below $132,900, something else is incorrect.
if you truly overpaid FICA, it will be calculated into your refund. Nothing for you to do.
Why or how did you overpay fica? Give details. Oh, do both your employers use the same payroll service? There might be a problem with that.
If you had more than one employer and the total of box 4 (only box 4 not box 6) on all your 2019 W2s for Social Security is more than $8,239.80 you get the excess back on your tax return. And it is for each spouse separately, not combined. Check 1040 Schedule 3 line 11 for it. Then Schedule 3 goes to 1040 line 18d.
No, I am single. I have two employers and both of them withheld FICA tax so I am sure I over paid.
Thank you! I do not think my employers use the same payroll service. I will check my 1040.
So the EIN number in box b is different on them?
How much is on each W2 for boxes 3 & 4?
We are having this exact same problem, but with social security taxes from two different employers. Turbo Tax recognized that we overpaid, and said that the amount would be deducted from what we owe, but it hasn't done it. I have read to go find the actual form, but on TT, I cannot find a way to access the version where I can see the actual tax return preview.
It was probably already deducted before you noticed. If you had more than one employer and the total of box 4 (only box 4 not box 6) on all your 2019 W2s for Social Security is more than $8,239.80 you get the excess back on your tax return. And it is for each spouse separately, not combined. Check 1040 Schedule 3 line 11 for it. Then Schedule 3 goes to 1040 line 18d.
Before filing, You can preview the 1040 or print the whole return
if turbo tax accounts for social security overpayment automatically then why is turbotax software telling me to get corrected w-2 before filing?
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:
i just looked at the preview of my 1040 and the amount does not show up on schedule 3, line 11. how do i correct this?
Sounds like just one of your W2s is wrong. Check boxes 3 & 4. How much is in each box? Box 4 should be Box 3 x .062 up to a max of 8,853.60. If box 4 is more than that you need to get a corrected W2 from your employer. Try leaving the cents off box 4. But also go back and double check your W2 entries, you may have entered box 3 & 4 wrong. A lot of people who have asked this found they did enter an amount wrong.
Or check W2 box 12. You may have entered Code A by mistake.
For 2021 the max for Social Security is $8,853.60 on $142,800 of wages (142,800 x 6.2%).
You only get excess SS back if one person had more than 1 employer and those employers took out more than the max of $8,853.60 (for 2021). If one employer took out more than the max you have to get it back from the employer.
Check 1040 Schedule 3 line 11 which goes to 1040 line 31.
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. You will only see a refund on Schedule 3, Line 11 if multiple employers withheld excess social security.
Since your employer withheld too much, contact them and ask for:
Do not file with excess withholdings on your return, as you may be subjected to penalties and interest.
Can I get a refund for excess Social Security tax withheld?
Hello. The answers here seem to be contradictory. I am having the same problem as the OP.
My wife had 2 employers in 2021 and got 2 different W2s (one from each). The amounts from box 4 are 8387.89 and 2038.47. TT warns me of the overage that has been paid, but Schedule 3 Line 11 is empty. How do I get TT to enter this overpayment?
Did you go all the way through the Review? Is that where TurboTax told you that there was excess SS tax withheld?
The answers above are not contradictory - what TurboTax does is dependent on whether there was one employer or more than one - see the Instructions for line 11 in the 1040 instructions on page 103.
I don't know where TurboTax does this processing - it has to be some place after the W-2s are entered.
@mtbmikej
Did it say to get a refund from the employer? Make sure each W2 is entered under her name. Try deleting them and re enter. That may clear something out.
For 2021 the max for Social Security is $8,853.60 on $142,800 of wages. And make sure box 4 is not more than 6.2% of box 3.
@BillM223 Thanks for the link to the IRS document, this helps explain how it should work.
@VolvoGirl Thanks for the suggestion. Deleting all of the W2s and re-entering them resolved the issue.
This seems a very old post. I have 2x employers in 2023, I have maxed $160,200.00 limit with the first employer, but the 2nd one still deduced 1700 social security holding in year 2023. Latest turbo tax SW does not check social security overpayment.
It seems you need to 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.
https://www.irs.gov/pub/irs-pdf/f843.pdf
@nick2000cn Turbo Tax should give you the excess Social Security on your return. Nobody has complained it hasn't. Be sure both W2s are entered under your name and not one for your spouse if married. Try deleting the W2s and re enter them. That may clear something out.
You get excess SS back if you had more than 1 employer and those employers took out more than the max for Social Security tax in W2 box 4. For 2023 the max for Social Security is $9,932.40 on $160,200 of wages (160,200 x 6.2%). And it is for each spouse separately if married. Check 1040 Schedule 3 line 11 which goes to 1040 line 31.
Be sure you entered box 3 & 4 right. Or post back with the amounts in boxes 3&4. Are you on Windows or Mac? Try updating the program and for Windows you might need to update Windows.
Wow, can not believe got such a light speed response ! Yes, I have two employers in 2023, with employer A, box 3 $160,200.00, Box 4 $9,932.40; and with employer J, box 3 $27,555.68, box 4 $1,708.45.
my federal refund shows 1211, and I did not see any where for extra social security holding info. Upon searching internet, it says you have to submit IRS form 843. Nor I see anywhere within turbotax I can add that form.
I really appreciate everyone's attention and reply to my post,
You don't need to fill out that form. It should automatically be on your tax return. Check 1040 Schedule 3 line 11 which goes to 1040 line 31. It is probably reducing a tax due and turning it into a refund.
Is there a way I can view 1040 schedule 3 line 11 before I file the return ? I did not see a way to view it under turbotax. or I have to click file first ?
"you don't need to fill out that form. It should automatically be on your tax return. Check 1040 Schedule 3 line 11 which goes to 1040 line 31. It is probably reducing a tax due and turning it into a refund."
Are you using the Online version or the Desktop program?
For Online, Before filing, You can preview the 1040 or print the whole return