Overpayment of social security tax: common pay agent with 2 legal entities

[sksk]

So I want credit for the overpayment of social security tax.  The 2 W-2 forms have same Fed ID number but slightly different names which means that TT doesn't see these 2 W-2's as different employer.  My employer has said that although the 2 W-2's have common pay agent (and therefore same Fed ID number), they are 2 legal entities and so I should be able to get credit for overpayment in the 1040 form itself.  Any ideas on how to do so in TT?  

Thanks.

[VictoriaD75]

Just enter the information in TurboTax. The software should identify the overpayment of Social Security tax. The overpayment will be reported on line 11 of Schedule 3 and included in your total payments on line 19 of Form 1040.

[SteamTrain]

@VictoriaD75 

We beat on TTX earlier this year about this to no end. 

TTX staff (In the lounge) indicated that particular situation would not be covered this year, even though it has been for the past several years.   This situation is on the TTX list of unsupported calculations, but it has ben on each years unsupported list for the past few years when it was actually supported in the software without complaint.

( Unless they've updated the software to allow it since ~April...but my desktop software doesn't seem to allow it still, and it is current. )

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ONLY..Those with the Desktop software "can" force the software to allow, and post, the SS credit, by

1) first paying attention to, and writing down, the overpayment amount listed during the interview...

2)  .then switching to "Forms Mode" and opening the 1040/1040SR worksheet

3)   Scrolling waaaaay down to the Schedule 3 section.

4) and just below line 10 on the schedule 3, is a box with the SS Overpayment amount showing as a zero...you replace that with proper overpayment amount from # 1 above.

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Again though, this should only be done when the W-2 forms come from a W-2/Payroll Agent who is issuing W-2 forms for two (or more) different companies for the same person, but using the Agent's one EIN on both of the W-2 forms.

Doing this probably voids any TTX software guarantee...and I have no idea your entry will block e-filing....it's not really an official "override" since the "override" selection si not required to make the entry.

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[Veezeebee]

Wondering if this issue has been resolved. I have a common pay agent (One FEIN) that sent me two w2s for two legal entities under my overarching company that I worked for in 2021. The w2’s have the common pay agent FEIN as opposed to the separate FEIN numbers for the individual legal entities. Can I use TurboTax for this situation? I’m trying to avoid the error that might pop up with adding two w2s with the same FEIN #. Yet, want to add the Two W2’s with different names.

[MarilynG1]

Efile is only looking at the EIN, not the names.  Yes, if you enter each W-2 separately (with same EIN), it will probably result in an efile error for a duplicate W-2. 

If the two entities both have the same EIN, they are most likely considered one entity as far as the IRS is concerned, so you can make one entry, combining the amounts. 

Click this link for more info on Multiple W-2s. 

[Veezeebee]

Thank you so much for your response. The legal entities have separate EIN #s but the pay agent EIN is on the W’2’s. Not sure why the common pay agent didn’t account for the taxes already paid.

[MarilynG1]

If you paid taxes that are not reflected on your W-2s, that does sound like something is amiss.

You could contact the companies directly for more explanation.