Excess Social Security Paid

[Bananalady]

My husband worked for 2 subsidiaries of one company with same EIN. He received 2 W-2's. Needless to say too much Social Security tax was taken out. He paid $1793.43 over limit of $8239.86. Why does Turbo Tax only credit $32 vs total amount?

[AmyC]

Schedule 3, line 11 should be showing the excess amount. I have seen it on many returns this year and just double checked with my software.

When it is on the form, it may be adding other items to create that entry on your 1040. Your 1040 line 18, sch 3, line 14 entry may be different due to more circumstances.

If there is still something wrong, you may want to contact a specialist that can work through that section of the return with you.

[jaime7]

Same problem, I tried to call Turbotax help- but they couldn't help... just said it was strange.  

How do we Force Schedule 3 line 11 to show correct excess amount?

[JosephF8]

Your employer is supposed to withhold 6.2% of your Social Security Wages (the Box 3 amount on your W-2), up to a maximum of $8,239.80 per taxpayer for tax year 2019.

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.

TurboTax determines this by looking at your employer's EIN.

So, if your employer withheld too much, contact them and ask for:

1. A refund for the excess amount, and
2. A corrected W-2 (also called a W-2c) which shows the correct Box 3 and Box 4 amounts.

Do not file with excess withholding on your return, as you may be subjected to penalties and interest.

What if my employer can't—or won't—cooperate?

You can correct the Box 4 amount yourself before filing. Simply multiply the amount in Box 3 by a factor of 0.062 and enter that amount or 8,239.80 (whichever is less) in Box 4.

To get a refund for the excess withholding, 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.

[pbrewer]

If the two W-2s come from the same EIN, how do you get turbotax to identify that they are from separate legal entities and address the overpayment on Schedule 3, Line 11?  All I get is the text that I have to get a refund and a corrected W-2 from my employer.  My understanding is that if they come from two EINs, this gets resolved through the Schedule 3, but TurboTax seems not to offer this possibility for two W-2s from the same EIN.  Instead, you get pushed down the path of having to file as-is and try to resolve down the road by filing Form 843.

[DavidD66]

Because your husband was paid by the same company, even though it was two different subsidiaries, you will need to get the company to repay him for the excess withholding, or file Form 843.  

[roberthoward022]

I used TurboTax Home and Business in 2016. I had worked for three different companies, and as a result overpaid my social security taxes by $3501. TurboTax entered the overpayment onto the 1040 form in the section "Payments" on line 71 labeled "Excess social security and tier 1 RRTA tax withheld" and added it to the federal income tax withheld from Forms W-2 and 1099 onto line 74. Thus, I was credited the overpayment as if it were income tax withheld.

[VictoriaD75]

That is correct. Excess social security gets included in your total payments on line 18e of your Form 1040. These overpayments are first reported on Schedule 3, line 11. By adding the excess to your payments, they help reduce any federal tax due or are refunded to you.

[VolvoGirl]

He was talking about 2016 and it showed up in 2 places as excess SS on line 71 as it should BUT ALSO showed up on line 64 for withholding.  

That could only only happen if the user entered it as other withholding himself.  

[VolvoGirl]

Oh, On line 64 or 74?  Yes line 74 is just the grand total of withholding and excess payments lines 64-73.

@roberthoward022 

[mikilet]

My wife had 2 jobs in 2019. As a result two things happened. Her W4 for each job was off and she paid excess soc sec tax of $1300. Our refund is just barely in the red as a result of the W4 error, but I had the idea that the entire $1300 would be coming back to us. Is that not correct? Has the excess Social security tax withheld actually saved us from paying back $1300 do to the W4 mishap? Hope this makes sense. Basically I can't see what the excess tax paid on line 18d has actually done for our refund.

[VolvoGirl]

The W4 has nothing to do with Social Security Tax.  It is a mandatory 6.2% on box 3.  Each employer holds out the full 6.2%.  They don't know if she went over by having another employer.  Add up all her box 4.  In fact, post the amounts from each W2 box 3&4 so I can check it out.

Yes you get the excess back on your return.  It either reduces the tax due or adds to your refund.

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.

[rjd256]

Excess SS Witholding does not show on Sch 3 and is not included in total fed taxes paid

[VolvoGirl]

@rjd256   Did you have more than 1 employer?  If it's on 1 W2 you have to get it back from the employer and get a corrected W2.

And the max is for each spouse separately not combined.  Delete the W2s and re enter them.  That may clear something out.  Or post back with the amounts in boxes 3&4.