Received 2 W-2s for 2020 due to a inter-branch transfer. Employer uses a commen taxpayer agent (FEIN number is the same). TT says excess SS tax witheld. How do I file?

[taxformummys]

My employer provided a letter showing two different FEINs and rules related to special reporting instructions for tax payer agents. But TT doesn't recognize that they are W2s from two different employers due to the same FEIN and is asking me to get refund from employer along with a corrected W-2. How do I file using TT and get refund for the excess tax witheld?

[DawnC]

If the employer won't issue you the refund (even though they should) you have to fill out Form 843 a mail in the request for the abatement.   The form is not supported in TurboTax, but you can print it out, complete it a file it separately from your tax return.  Links are below.   

If one employer withheld too much Social Security tax, you won't be able to take a credit for the excess on your tax return.   TurboTax determines this by looking at your employer's EIN. In unusual cases where the employer changed their EIN during the tax year, an excess withholding credit can be taken.   If the EINs were different, TurboTax would automatically include the excess as a credit.   But since the documents reference the same EIN number, they are considered from the same employer.   

So, if your employer withheld too much, contact them and ask for:

1. A refund for the excess amount, and
2. A corrected W-2 (also called a W-2c) which shows the correct Box 3 and Box 4 amounts.

In this case where they won't, you can manually adjust the number in Box 4 on one of the forms and you should be able to e-file.   Then file Form 843 later.   Do not file with excess withholdings on your return, as you may be subjected to penalties and interest.

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What if my employer can't—or won't—cooperate?

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 $8537 (whichever is less) in Box 4.  Since you have two Form W-2s, reduce one of the box 4 amounts so that both of them total $8537.   

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.  It is a pretty straightforward form, but if you have any questions, you can reach back out here and someone can help.    You will be claiming the same amount you adjusted the box 4 amount above which is the amount of social security tax you overpaid

How Do I Get a Refund for Excess SS Taxes Paid?.  

[taxformummys]

Thank you for your prompt response DawnC. The employer is not willing to provide a refund and a corrected W2. They gave me a letter stating that they use a common reporting agent and provided FEIN numbers of the two companies I worked for in 2020. The SS Tax withheld individually on each of the W2 is accurate however, the total tax withheld between the two W2s is more than the maxiumum allowed for a single employer. Is Form 843 the only way to get the refund? Should I file the return first and then submit the 843 with a copy of my return and letter from the employer?

[DianeW777]

Yes.  If the employer will not correct the situation you should file your return, then send in Form 843 with your two W-2s and a letter from the employer.

The employer will be liable for the repayment to the IRS and the IRS will handle that part of it.  When an employer files their employer payroll tax report (Form 941) a math formula is used which would not allow them to pay more than they owe based on the wages they paid.  It is for this reason that when only one employer is involved they actually have the tax dollars and it was never paid to the IRS.

For your convenience as indicated by @DawnC the information is posted here again. 

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.  It is a pretty straightforward form, but if you have any questions, you can reach back out here and someone can help.    You will be claiming the same amount you adjusted the box 4 amount above which is the amount of social security tax you overpaid

[taxformummys]

Thank you for your reponse. Do you know how long does IRS take to issue a refund once a form 843 is received? I am concerned that I might never receive it or they may deny the refund. Are you aware of any other tax filing softwares that support processing of 2 W2s with the same EIN number wherein the employee can claim the refund on the tax return?

[SusanY1]

It doesn't typically take a very long time for the IRS to process Form 843 but an exact time frame isn't known.  

An employee can't claim a social security overpayment on their tax return because there is nowhere to claim it. Therefore, no software will offer that option. 

Typically, an employer is happy to adjust the overpayment because it would mean that they also overpaid and they would be due their own refund.  However, you certainly can only control your side of things, and you cannot make your employer apply for their own refund.  

The only ways that an individual can reclaim an overpayment of social security are from the employer or by filing Form 843 separately from the tax return, when the employer will not adjust the overpayment.