I received 2 W2s due to a department change. Employer uses a common reporting agent (same FEIN) so TT says I should get excess SS tax refunded. How do I enter?

[snelson_55125]

Employer provided a letter showing 2 different FEINs and the excess tax as well as explanation that due to being a common reporting agent, I should get this credited on my taxes however TT doesn't recognize the excess amount since I had to enter the same FEIN so TT would match my W2s. Employer says 1 thing, TT says another, and I am stuck in the middle out a few thousand dollars.

[DMarkM1]

The IRS instructions found here are as follows.  For a single employer, the employer should make the adjustment.  If they do not, you can file a form 843 to claim the excess.  

[snelson_55125]

Thank you very much for your response, however based on the employer using a common taxpayer agent for the two legal entities (each with a unique FEIN), the employer is following the special reporting situation guidelines for W-2 agent reporting by using the FEIN of the agent in box b instead of the 2 held by the legal entities. The name of each employer is shown in box e, however TT won't recognize the overage because of the common FEIN. Is there another way to handle this at filing or is the 843 submission post filing the only course of action?

[DawnC]

Unfortunately, the 843 is your only option when the overage is from a SINGLE employer.   If the EINs were different, the credit would calculate on your return.

If any one employer withheld too much Social Security, Tier 1 RRTA tax, or Tier 2 RRTA tax, you can't claim the excess as a credit against your income tax. Your employer should adjust the excess for you.  If the employer doesn't adjust the overcollection, you can use Form 843, Claim for Refund and Request for Abatement to claim a refund.   

However, there is a way to e-file your return with the correct amounts and file Form 843 separately by mail to get the excess since the payroll agent won't refund you as they should.  

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 8,537.40 (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.

[snelson_55125]

Thank you for the response. Just wanting to clarify 3 things and ask 1 additional question:

1) I did work for 2 different legal entities within my employer - each with a unique FEIN. The problem is because the company uses a common agent tax filing, the W2s reflect the common agent FEIN - not the individual FEINs associated with the 2 legal entities

2) My employer has provided documentation of the 2 legal entities and FEINs and stated they are following the correct IRS guidelines for common agent filing (which requires the 2 W2s reflect the common agent FEIN, not the legal entity FEINs - that is why TT won't recognize the excess contribution)

3) Box 4 for each of the 2 W2s has the actual amount withheld when I was part of that legal entity's FEIN so neither exceed the $8239.80 limit and each are 6.2% of the gross wages earned within that legal entity. In aggregate for the common filing agent, the total exceeds $8238.80 and that is why I'm due that overage.

With all that said, is there anything else I need to do or just submit and then file the form 843 separately by mail?

[ReneeM7122]

If you've got a form that isn't supported for e-file, like form 843, you'll need to attach that form and file the entire return by mail.  There is no way to e-file part of a return and let the IRS know that a missing form is coming by mail.  

Here is a link with instructions on how to print and mail your return.

[snelson_55125]

Thanks Renee, however this seems to contradict what Dawn said in the earlier response that I should e-file my return and then fill out the 843 and mail it in separately, keeping a copy with my tax return. Can the return be filed with a refund request of the extra withheld amount post filing?

[DawnC]

If you are not getting an e-filing error when you go to e-file, you can mail Form 843 separately so that your return does not get into the backlog of mailed returns waiting for processing.    Since your Box 4 amounts are correct, you might not receive an error.    The link above has both the form and the instructions.   Form 843 is not supported in TurboTax, so it has to be mailed either way.   

The total of Box 4 for a single employer should not exceed $8,537.40 per taxpayer for tax year 2020.   The numbers in the FAQ instructions are not updated for 2020 yet.....

[Stephen in CA]

Hi snelson_55125,

Hope this worked out for you last year.  I'd love to hear how this was resolved and also sent a private message to you.

Thanks!