Employer gave two W2s and withheld too much social security

[sgddddd2]

Hi TT experts,

When completing my tax return, TT has told me:

You may be due a refund from your employer

Double-check the Social Security tax withheld to make sure we've got the right amounts. Select Back to make any changes to your forms. If these amounts match your W-2, you're entitled to a refund from your employer. Your employer should also give you a corrected W-2 (Form W-2c) with the updated withholding amount.  Don't file your tax return until you have your W-2c and you've added the corrected info in TurboTax.

I received two separate W2s from my company due to the fact that their Third Party Vendor issued my third party sick leave when I was out on my maternity leave. This Third Party Vendor's payroll system did not know that I have reached my Social Security Wage Limit for 2023 and they withheld SSN taxes that should be refunded back to me.

Their specific response was:

I (the HR rep at my employer) just got confirmation from 'System 1' that they are unable to generate a W2C because their system does not allow them to make any corrections on the Social Security Taxable Wages. Due to the fact that two separate systems generated your W2 (System 1 vs 2 - names omitted for privacy), you should be able to retrieve a refund when you file your taxes.  Would you be able to check with a rep at the tax filing website to see if the refund will be issued directly to you when you submit the tax filing or do they need you to fill out the IRS Form 8922.

I would greatly appreciate your advice on what I should do here!

[BillM223]

First, TurboTax does not support generating the form 8922.

Second, TurboTax presumes that two companies that issue W-2s that use the same EIN must be able to correct the over withholding of the Social Security Tax.

You make reference to "two separate systems generated your W2", but both systems have the same EIN, I am willing to bet, so how does TurboTax know that they are two separate systems?

We encourage you to go look at form 843. No, TurboTax does not support form 843.

[steveeng]

You only need to go the employer for refund if they calculated incorrectly.  In your case, the extra SS tax is not really an error, just a consequence of having multiple W-2's.  If you've entered your W-2's correctly (i.e., entering all info in boxes 1-6, TurboTax will know that too much SS tax was paid and you will get a credit on your tax return.

It's called "excess social security and RRTA tax withheld" and should show on line 11 of schedule 3 and line 31 of 1040.  https://www.irs.gov/taxtopics/tc608

There is really no need to involve the employer(s), unless they actually calculated the tax incorrectly.

[DavidD66]

If the W-2s have different Employer Identification Numbers (EIN) you will get the Excess Social Security withheld credit.  If they have same the same EIN, you will have to seek a refund from your employer.   

[sgddddd2]

Thanks for your response.  You are correct that both systems use the same EIN. I can fill out the Form 843 but should I then just ignore what TT says and submit the return to the IRS?

[AnnetteB6 · Accepted solution]

Before you submit your return, you should make a correction on one of the W-2s so that it appears that the correct amount of Social Security tax was withheld.  

Take a look at the following TurboTax help article under the link Single employer for more guidance:

Can I get a refund for excess Social Security tax withheld?
 

@sgddddd2 

[vreines]

Hi - I am having this exact situation this year.  Did you end up correcting the amount of social security tax withheld in TurboTax or did you leave it as is?  Thanks.

[RogerD1]

If you have two W-2 forms with the same Employer Identification Number, and they withheld more than the maximum Social Security withholding ($10,918 for 2025), you should go to the employer and ask them to issue you a corrected W-2 and refund the excess Social Security withholding back to you.

If the employer refuses to correct the W-2, you can claim a refund of the excess Social Security tax withheld on Form 843.  This form is not supported by TurboTax and cannot be e-filed.  It will need to be filled out manually and mailed to the IRS.

If you had two W-2 forms with different Employer Identification Numbers, you can enter both forms in TurboTax and any excess Social Security tax withheld will get refunded back to you when you file your tax return.  The amount of the excess is reported on Schedule 3, line 11.

See Can I get a refund for excess Social Security Tax withheld? for more information.