Overpayment of social security tax and CA-SDI due to multiple employers

[henrysf]

On top of my daily job, I also work as an IHSS live-in provider in 2023.  Per my understand, I don't need to pay any federal and state (California) tax for my IHSS income as a live-in provider.  No federal or state tax had been withhold.  However, social security tax, medicare tax, and CA-SDI were withhold for IHSS income.  As a result, I have overpaid social security tax and CA-SDI.  There is no limit for medicare tax.

For 2023, max social security tax per person is 9932.4, and I paid 9932.4+554.01 through my two jobs.

Max CA-SDI is 1378.48, and I paied 1378.48+80.42.

That said, I need to enter the IHSS W2 data to Turbotax Premier, and I found https://ttlc.intuit.com/community/taxes/discussion/ihss-live-in-provider-0-in-box-1-2-16-and-18/00/2... on this topic.  

My questions:
Will Turbotax automatically calculate and claim refund for my social security tax and CA-SDI overpayment?  Or I need to do something extra?  How do I confirm if the right amount of credit has been claimed (looking at certain form or lines?)?

[ThomasM125]

You will get credit for your excess social security tax when you prepare your tax return in TurboTax. It will be credited toward your federal income tax paid in for the year of the excess. It will show on schedule 3, line 11. You should also get credit for excess SDI on line 74 of your California Resident Income Tax Return form 540. You can look at those lines on your tax returns to insure that you have received the proper credit.

[henrysf]

Thank you @ThomasM125 I have a followup question.

I can follow https://ttlc.intuit.com/community/taxes/discussion/ihss-live-in-provider-0-in-box-1-2-16-and-18/00/2... to enter overall social security wage (box 3 of W2) and make the income exempt from tax, but the instructions do not show how to enter withheld social security tax  withheld (box 4 of W2) and CA-SDI (box 14 of W2).  So, Turboxtax won't calculate overpayment and claim credit/refund for me.  Do you have any suggestion on how to enter box4 and box 14 numbers?  Or, are there different instructions to follow in this case?  As I am an IHSS live-in provider, the IHSS income are excluded from federal and state tax, but not social security tax and CA-SDI so withholding of the two exceeded the limits given I have another daily job.  I am confused on what's the right way to handle this case now.  Can you please kindly offer some help?

[MonikaK1]

If the IHSS payments you received qualified as "difficulty of care" payments as explained in IRS Notice 2014-7, they may be excluded from income. 

You may choose to include all (or none), but not part, of these payments in earned income for determining the EIC or the ACTC, if you might qualify and if these payments are otherwise earned income (wages or income from self-employment).

See also this discussion for a workaround to use in the situation where the agency is reporting FICA taxes but no income. You can enter $1 of income in the W-2 in TurboTax in order to be able to enter and report the FICA taxes.

Once you have all of your W-2s entered, TurboTax will calculate any credit due for excess FICA taxes withheld. See this help article for more information.

See here for questions and answers from the IRS on this topic. Question 12 addresses the issue of Social Security and Medicare taxes. If you believe they were withheld in error, contact the agency that issues the payments.