The maximum amount that should be in Box 4 of your W-2 is $8,239.80 with wages of $132,900. When using this information you should not receive an error in the program.
If your wages are less than $132,900 the amount in Box 4 of your W-2 should be the amount in Box 3 multiplied by 6.2%. If the amount in Box 4 is greater than 6.2% of box 3 then yes the Social Security tax was over withheld.
What if the amount is accurate in box 4 based on SS wages? Is there some sort of bug in the program if an employee earned over the max and only had the maximum withholding for SS?
In TurboTax Online Free Edition, I prepared a tax return with one w-2 and $150,000 in boxes 1,3 and 5.
Box 4 reported the maximum Social Security tax of $8,537.
The tax return passed Review with no error message.
What error message are your receiving?
First of all try leaving the cents off of box 4.
Check boxes 3 & 4 on your W2. Box 4 should be 6.2% of box 3 up to a max of $8,537.40. So take the amount in box 3 and multiply it by .062. If box 4 is more than that you need to get a corrected W2 from your employer. But also go back and double check your W2 entries, you may have entered box 3 & 4 wrong. A lot of people who have asked this found they did enter an amount wrong.
Or check W2 box 12. You may have entered Code A by mistake.
A sure way to fix this is to delete the W2 and re-enter it. That may clear something out.
Or post back with the amounts in boxes 3&4.
After importing the W2 from ADP the message is that I will be receiving a W2-C. Any idea why a W2-C would be issued? Nothing was deferred on the employee level. The second error message is that a refund is due and that the SS tax is overpaid. The amount withheld was $8,537.40 which is the maximum.
Yes, this is a Corrected W2 that you will be receiving from ADP, if in fact that is where/who the message came from. If this is the case, wait for the W2-C and compare to see what the error/correction was. Then you should be fine when entering it into TurboTax.