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cherls
Returning Member

Are restaurant server tips to have Social Security Tax withheld

I am a restaurant server. When I entered by W-2 details into TurboTax, TurboTax said my employer had over withheld social security tax in Box 4 and that I would need to go to my employer for a refund. That this overage would not go towards any tax I owed or any refund I would get form the IRS.  Trying to figure out if I did actually have too much social security tax withheld as I received conflicting answers when researching this in TurboTax and other sites.

I first confirmed the data I have on the W-2 was accurately entered into TurboTax and it was but I couldn't get the message to come back up that says I overpaid Social Security tax so I deleted the W-2 and reentered all the data and once again I couldn't get the overpayment message to come up like the first time.

Here are the details to help you help me. Thanks in advance for the help

Box 1 and 5 correctly shows my total hourly and tip wages. Box 3 "Social Security Wages" only shows my minimal hour wages earned. Box 7 shows my Social Security Tips correctly (Box 1 and 3 less the hourly wages shown in Box 3.

Box 4 "Social Security Tax Withheld" is 6.2% of boxes 1 and 3 but it is 91.4% of Social Security Wages in Box 3.

Trying to figure out which is correct and if I am due a refund from my employer.

 

 

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3 Replies
RobertG
Expert Alumni

Are restaurant server tips to have Social Security Tax withheld

It does not seem like you were over withheld.

 

Employers are required to withhold Social Security tax on wages and tips, and 6.2% is the amount to withhold from wages and tips.

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Are restaurant server tips to have Social Security Tax withheld

Adding up boxes 3 & 7 will give you the total for SS amount in box 4 and the program knows this  ... so did you miss entering the amount in box 7 the first time thru?  If you did that message would have been shown. 

cherls
Returning Member

Are restaurant server tips to have Social Security Tax withheld

thanks for the reply. I don't believe I entered it wrong, but may have. Bottom line what you are saying is that it is correct for Box 3 to only be the hourly wages with Box 4 using the totals from Boxes 3 and 7 to properly calculate the 6.2% in withholding. If yes, then all looks good as is. 

This makes sense, but I was getting conflicting info online saying the SS tax withholding should only be based on income in Box 3. 

 

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