Single EIN, Multiple Divisions, IRS must refund extra Social Security Tax Withheld

[chriskbinns]

I have the download version of 2019 TurboTax Deluxe.  Mid-year I transferred between divisions of a global company.  The company is required to have a single EIN (which it does), and begin recollecting social security after the transfer (which it did).  The IRS is required to refund/credit the over payment amount to me under IRS Regulation 307.7701-2(c)(2)(iv) - and my employer is prohibited from doing so.  

The instructions for the 2018 version of TurboTax had you make this adjustment by choosing "separate employers" (which they are) but that option no longer exists in the 2019 version.  TurboTax informs me I must seek a refund from my employer, which they cannot and will not pay.  How can I get this resolved on my 2019 TuboTax return?

[rjs · Accepted solution]

Officially TurboTax does not support the situation where two W-2s from different companies have the same EIN. Nevertheless, there is an easy way to handle it, but only in the CD/Download TurboTax software, not in TurboTax Online. You didn't indicate which you are using.

You have to calculate the amount of excess Social Security tax yourself. TurboTax will not calculate it for you. Then, in the CD/Download TurboTax software, switch to forms mode and open the Form 1040 or Form 1040-SR Worksheet (1040/1040SR Wks in the forms list on the left side). Scroll way down, almost to the bottom of the worksheet, to Schedule 3, Part II. In that section, between lines 10 and 11, is a box called the Excess Social Security and Tier I RRTA Tax Withheld Smart Worksheet. Enter the amount of excess Social Security tax to be refunded on line A in that smart worksheet. The credit will then appear in your tax return on Schedule 3 line 11, and will be included in the totals on Form 1040 lines 18d and 18e.

If you are using TurboTax Online you would have to switch to the CD/Download software in order to make this entry, since TurboTax Online does not have forms mode. See the following FAQ for instructions to switch to the CD/Download software.

How do I switch from TurboTax Online to the TurboTax software?

[chriskbinns]

awesome - worked perfect - thank you