Reclaim social security witholdings

[tuowl36]

Hello, 

From Jan-June of this year I worked at Job #1. In mid-May, my gross YTD exceeded $135,000 and from that point until now, Job #1 stop deducting social security tax from my paycheck (as has been the case for the past few years). I'm schedule to start a new job on 08/05 at Job #2. I forwarded them my most recent paystub, however they said that IRS rules state that they need to start withholding all over again and that I can reclaim the overpayment when I file in 2020. I'm sure they know what they are talking about and I did a little bit of reading (one person stated it is a obviously a nice interest free loan I'm giving to the IRS). 

Obviously I am not happy about that. It will be nice to get a refund that is over $8000 at least, however I could really use that money now. My question is to the community, do I have any options here? Is it possible to file some sort of form with the IRS in 2019 for a repayment (say a quarterly basis?). I'm 99% sure I have no options, but figured it couldn't hurt to ask. Thanks. 

[Rainman12]

What you were told is correct. Secondary employer(s) can not assume that priors actually withheld as required, and must withhold based only on Their payments to you. You'll get excess FICA back from multiple employers when you file. and not before.

[Anonymous]

there may me a way around this.  claiming more federal exemptions on form w-4.   Thus you would have less federal income tax withheld but the excess social security withholding would be applied to against any taxes owed.   read the general instructions on W-4.      be careful.  too little withholding + excess social security could result in penalties.  

https://www.irs.gov/pub/irs-pdf/fw4.pdf

[tuowl36]

I was wondering if I could just deduct less federal tax and re-do my W-4. Right now I have "5" selected. So should I just add another 3 to get 8? I plugged that into Paycheckcity and it reduces my federal tax deduction (although not to the same value as the SS overage). But when I file my taxes in 2020 for the 2019 year and let's say I overpaid SS by $8000 and underpaid federal tax by $8000 then it is a wash and I don't see why that is an issue (although I'm sure you are right and there are penalties).  I will make an appointment with an accountant, but it is good to get some information first. Thank you for posting!