Can we file a return with a W2 that shows an over-withholding of SS?

[jhmurray51]

We want to file without going back to the employer for a revised W2 and a refund from them of $50.  He does not want to delay getting his refund.

[MargaretL · Accepted solution]

It depends if the excess is caused by multiple employers or a single employer. 

SINGLE EMPLOYER:

Please do not file with excess withholdings on your return, as you may be subjected to penalties and interest. If the SS excess is from the same employer, and the sum of withholdings exceeds the Social Security limit, the excess cannot be taken as a credit on your tax return. Instead, you need to contact your employer and request corrected W-2 forms along with a refund of your overpayment. 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.

If your 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 7,347 (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.

MULTIPLE EMPLOYERS:

You don't need to take any action. TurboTax will automatically add the excess to your federal refund or subtract it from federal taxes you owe, whichever applies. The excess will appear as a tax credit on Line 71 of your Form 1040.  (For tax year 2016, you'll have excess Social Security withholdings if the sum of multiple employers' withholdings exceeds $7,347.00 per taxpayer.)