Despite owing 1300 dollars, TUrbotax is saying I qualify for a 2800 dollar Social security refund. How and when do I receive this?

[Mike9241]

if you had multiple employers (w-2's with different EIN)  then excess Social security may have been withheld. were your social security wages more than $142,800?  then you will get a refund of the excess and it will be incorporated into your 1040. (line 11 schedule 3).  make sure that if you are married and each got w-2s the proper taxpayer is indicated.  each spouse can be subject to the maximum amount.

[bpwilson58]

thanks for the prompt reply. Yes my earnings did exceed that amount. When you say the proper tax payer is indicated, not sure I follow 

[SteamTrain]

@bpwilson58 

"the proper taxpayer is indicated"

______________

I'm pretty sure that what @Mike9241  meant about that...is that occasionally, a married person will accidentally indicate that their spouse's W-2 is their own....thus improperly inflating their own W-2 income and SS withholding, when actually it was supposed to be for two separate people.  This accidental entry can result in an improper SS refund.....which the IRS eventually figures out ~6-12 mo later and bills the couple for the accidental refund of excess SS withholding that wasn't really the situation.

[bpwilson58]

Got it. Dont think thats an issue.

However, I am still not seeing this refund applied to my overall tax balance due anywhere 

[VolvoGirl]

For 2021 the max for Social Security is $8,853.60 on $142,800 of wages (142,800 x 6.2%).

You only get excess SS back if one person had more than 1 employer and those employers took out more than the max of  $8,853.60 (for 2021).  If one employer took out more than the max you have to get it back from the employer.

Check 1040 Schedule 3 line 11 which goes to 1040 line 31.  It is included in your refund or reduces a tax due.  

[VolvoGirl]

And your excess Social Security is 2800?  That sounds more like the Recovery Rebate Credit for married (1400x2).  That was for the 3rd Stimulus payment.

[bpwilson58]

I had 2 employers last year and I made in excess of the aforementioned amount. So do I get the money back from the govt or an employer?

Where can I see this 1040 line item in turbo tax ? Is it only available after I file?

[bpwilson58]

Employer 1 : SS Wages $142,800.00   SS tax withheld  $8853.60

Employer 2: SS Wages $44523.10      SS Tax Withheld $2760.46

Spouse is a public school teacher and does not pay in to Social Security 

[VolvoGirl]

Check 1040 Schedule 3 line 11 which goes to 1040 line 31.  Oh and leave the cents off of box 4.   That is causing other problems because of rounding.

Before filing,  You can preview the 1040 or print the whole return

https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-f...

[bpwilson58]

Yes, it is showing there. What does all this mean?

[VolvoGirl]

So you have 2760 excess SS?  Yes it is added to your refund or reduced a tax due.  Line 31 is included in the final result.   You are getting credit for it.  

[BillM223]

There is an upper limit of Wages that are subject to Social Security tax (generally, 6.2% of your Wages in box 3 on your W-2). As noted above, the upper limit this year is $142,800.00  - this is why box 3 is probably less than boxes 1 or 5 on your first W-2.

But it happens that with two or more employers, they can collect more than the Wage limit (because employers are told to start withholding SS taxes from day 1 of your employment and because they don't know what other employers might have done).

The upshot is that between them, the two employers withheld too much, so it is bring returned to you as VolvoGirl says.