Social Security Tax Overpayment - No Schedule 3 Produced

[rsbrunton]

Greetings.  I worked for multiple employers, which resulted in an overpayment of Social Security Tax, which TurboTax Desktop dutifully advised me of.  Other FAQs in the Community Form consistently refer me to Schedule 3 of the Form 1040, however, my completed return does *not* include a Schedule 3, which leads me to believe that the schedule was *not* created by TurboTax.

I am running WinPerRelease [phone number removed]. 

Is this a bug in this version or did I do something that inhibited the creation of Schedule 3?

[rsbrunton]

Interesting ... when I entered the Version number, the posting filter interpreted it as a Phone Number and blocked it out.  Need for enhancement in the Version number formatting??

The Version Number is 022<then a dot>000<then a dot>0366

[VolvoGirl]

The version doesn't matter.  All versions have excess SS.  No bug has been reported for that.   Turbo Tax calculates the excess automatically.  If Turbo Tax told you there is an excess then it's there.  Are you using the Online browser version or the Desktop installed program?

For 2022 the max for Social Security is $9114.00 on $147,000 of wages.  For 2022 it will be on Schedule 3 line 11 which goes to 1040 line 31. The Social Security overpayment on line 31 is included in the total refund on line 35a.

Double check all your W2 entries boxes 3 & 4.  Are you over the max?  Are you married?  Be sure each W2 is assigned to the right spouse.  

[DawnC]

If the overpayment was from multiple employers (multiple W-2s with different EINs) then TurboTax should have credited the overpayment on Line 11 of Schedule 3 - which should flow to your Form 1040, Line 31.    Do you have a credit on Form 1040?   

[rsbrunton]

VolvoGirl ... thank you for the reply.

• Good to know that excess SS is built-in to all versions
• I'm using installed Desktop version
• I understand the IRS limits and max amount to pay
• All W2s checked
• I had multiple employers, both of which collected SS Tax, which resulted in the over contribution

My point is that no Schedule 3 was produced by the application; even though it was flagged during review.  Looking only at 1040 Line 31 provides no comfort that the refund of the overcontribution was included (since there is no Schedule 3 to confirm)

[VolvoGirl]

Did you switch to Forms Mode and open schedule 3?  If it is not listed in the forms list on the left side click on Open Form at the top left and type schedule 3 to find it and see what's on it.  

[rsbrunton]

Hi, Dawn ... thank you chiming in so quickly 🙂

As I have mentioned, no Schedule 3 was produced by the application (I looked in the Q/A view as well as in the Forms view).  Several FAQ replies do indicate that it would be reflected on Schedule 3.

Hence, either there is a bug that I'm falling into or data has been entered in a manner that does not 'trigger' the generation of the Schedule 3.

Further, when the exception is reported by TurboTax, the advisory is a bit malformed.

It reports 4 columns: "Box C - Employer", "Box 4 - Social Security Tax Withheld", "Correct Withholding Amount", and "Amount Your Employer Owes You"

Box C - Employer ... lists only the name of the 2nd employer

Box 4- Social Security Tax Withheld ... correctly lists the total of the SS tax paid between the 2 employers

Correct Withholding Amount ... correctly lists the max amount allowed $9114

Amount Your Employer Owes You ... correctly list the $ difference between what was paid and the max $9114

[rsbrunton]

VolvoGirl ... great idea ... I looked at the Forms view and did not see Schedule 3.

I didn't realize I could summon up Forms by name ... I did pull up Schedule 3 and it does NOT have any entries populated other than Name/SSN at top.

[VolvoGirl]

Ok that is not an excess.  It's saying that one employer paid you too much and you have to get the excess back from that employer.  How many W2s do you have?  Are they all  for different employers with different EINs?

Double check all the W2s boxes 3 & 4.    Get a calculator and check each W2 box 3&4. Multiply box 3 x .062 and it should be box 4. The max for all box 4 combined (but only for each person) is $9,114.00. Even one penny over from rounding will be excess. So leave off the cents! Or post back with the amounts in boxes 3&4.

[rsbrunton]

VolvoGirl ... the amount of SS tax paid by the first employer did correctly 'cap out' at $9114.

The second employer, not knowing that I had already 'capped out', began collecting SS tax again <-- this is what amounts to the overpayment.

Both employers behaved correctly.

The TurboTax "On Demand Tax Guidance" says, "If you worked for multiple employers: If your Social Security ... tax withheld by all your employers was more than $9114, you'll get a refund of the excess on your tax return." <-- this would come in the form of Schedule 3 being created ... which it was NOT.

The second employer would not be obliged to refund the amount deducted because they behaved correctly.

[VolvoGirl · Accepted solution]

Yes but Turbo Tax is saying that one employer took out too much.  You need to resolved that first.  Did you check box 3 x .062 = box 4?  Maybe reduce box 4 by $1.  Double check the EIN on the W2.  Maybe you entered the same EIN on both?  

If nothing else delete the W2s and re enter them.  That usually clears something out.  

[rsbrunton]

VolvoGirl ... eureka!!

I could tell from your first (super fast) reply, that you had a 'developer' mindset to debugging results ... look here, check that, change this by $1 ... all terrific approaches to characterizing application performance.

The issue was just as you suggested ... I mistakenly used the same EIN for both of my employers last year.  Once corrected, the Schedule 3 was produced and the expected refund from the SS Tax overcontribution was added.  And, since I fell into the 'duplicate EIN' hole through my data entry, I also double-checked the State EIN number as well.

Allow me to summarize my experience here:

• This forum (through dedicated support by members like VolvoGirl) does work
• Suggestions to TurboTax
  • Add a check to close this escape (test for W2s with same EIN also have equal other metadata ... like Employer's name or Address or State EIN)
  • Update the forum 'phone number' filter vs Product Version to allow the latter to remain unfiltered

[inneedofsleep]

Any advice when receiving two W2s from two different employers (both part of the same giant corporation), both utilizing the same Common Pay Agent and therefore both having the same EIN?

Thanks...