I have two W2s, my first employer payroll paid the full Social Security tax for the year. Second employer didn't withhold, but Turbotax is saying I owe the full amount.

[DianeW777]

To clarify:

1. Are you saying that your second W-2 from a completely different employer did not withhold social security tax?  Is box 4 empty?
2. Do you know why the second employer would have done that?  It's not common since they don't know what the other employer did (aside from you telling them).
3. Please update and include the box numbers for employer 2.  

TurboTax would assume these taxes should be withheld since you had more than one employer.  This assumes one employer would not have the knowledge of the other employer or how much you made at employer 1.

[Barrald]

Correct, box 4 is empty for my second employer. I informed them I had fully paid my SS tax at the other employer and requested they not withhold further.

Isn't it reasonable to expect TurboTax to see I've paid the max due for the year with my first employer and not double-assess?

[ThomasM125]

Can you clarify where you are seeing the tax on your form 1040?  It would show on line 6 of schedule 2. I think TurboTax may be saying you owe the social security tax, but it may not be entered on your tax return. You might just be notified that your employer withheld the wrong amount of social security tax, so you would have to take it up with them.

You can view your form 1040 while working in the online version of TurboTax by following these steps:

While working on your return in the Federal section of TurboTax:

   1.  Choose the Tax Tools icon on your left menu bar

   2.  Tools

   3.  View Tax Summary

   4.  Choose the Preview my 1040 on your left menu bar

[VolvoGirl]

I have never seen or heard of Turbo Tax saying you owe the full amount of SS tax.  What page is it on?  What else does it say?  Can you post a screen shot?   Delete the second W2 and re enter it.  That may clear something out.  

[Critter-3]

Ok ... so you told the second employer that you did not need to have any more SS tax withheld from your paycheck and the actually did NOT do any more SS withholding ????   That is not allowed ... they cannot withhold the SS taxes from your paycheck ... they MUST withhold them and you must wait to get the excess refunded on your tax return.  If they did that so that they could also escape the employer's portion of the SS taxes then they are in for a surprise when the SS administration catches up with them. 

If the actually did put a number in box 3 and a zero in box 4 then you have a mess that the IRS may not like ... you might be able to efile by putting a zero in both boxes 3 & 4  but don't be surprised when you  get a notice from the IRS and/or the SS administration later.   

[Barrald]

Line 6 of schedule 2 (Uncollected social security and Medicare tax on wages) is blank on the 1040. My suspicion that SS tax is being assessed was due to having my first W2 imported and a large refund expected. Importing the second (and yes, I've deleted and re-added manually with the same results) suddenly switches to a large amount due, seemingly equaled to the amount of "missing" SS tax from the second W2. Does the blank Line 6 rule this out?

[Barrald]

@Critter-3Can you point me to your source for your "must withhold" statement?

[DianeW777]

Due to your unusual situation, you need to be sure on your second employer W-2, that you have zero in Box 3, for Social Security Wages.  When I test this I do have an alert in TurboTax but no error.  Also there is not excess social security  on line 11, Schedule 3.

This works in both TurboTax Online and TurboTax CD/Download.  Please update if you do not obtain the same experience.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number then place in this issue.
4. We can then review your exact scenario for a solution.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

@Barrald

[BillNJ]

Agree on (a) the second employer should have withheld (it's noted on the SS website, and the IRS and SSA have a reconciliation/reporting requirement in Section 232 of the Social Security Act, and you may have inadvertently created a problem for them by not withholding), and (b) I would simply put $0 on your second W-2 for SS withholding -- it may trigger scrutiny but if the numbers line up, probably nothing more for you.  (Normal practice going forward and the "right' way to do this is simply to have double SS withholding and then claim a refund for the excess amounts -- very common.

Want to make sure, though, that your second employer did withhold Medicare.  There is no double-withholding out,  and you might have a real tax liability along with your employer if it did not.

[Barrald]

@DianeW777Box 3 and 4 are indeed blank. The issue seems more likely to be insufficient federal withholding, but glad to get your take via the diagnostic file. Token number is 975452.

[DianeW777 · Accepted solution]

Your income, when adding the second W-2, jumps into the 32% tax bracket.  The tax system is a graduated system so it starts out at zero and gradually rises as the income rises.

Again, this can easily happen when you have a second job.  The federal withholding is based on number of pay periods and then gross taxable pay each period.  You can look at the employer withholding tables if you like.  But this is a normal outcome in your situation if your not prepared.

• IRS Publication 15-T 2022

@Barrald

[VolvoGirl]

Because you only get one standard deduction no matter how many W2s you enter. Turbo Tax starts out by giving you the Standard Deduction. You entered more income when you entered the second W2 but you didn’t enter more deductions. And each job only withheld taxes like it was our only job for the year. You might want to adjust your withholding. Also as you add more income you might not be getting as many credits as before.

The social security won't affect your refund except if you have an excess then you get that back.