Social Security Tax overpayment
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gractrad
Returning Member

Social Security Tax overpayment

I have two W2's from the same company. The 1st one has SS wages of $131,700 and SS tax withheld of $8,537.40. This is the max amount for tax year 2020. The 2nd W2 has an amount for imputed income from Company paid life insurance. In box 12a it has letter code M for SS tax uncollected of $86.67. When I enter that into Turbotax, it deducts that amount from my refund. This means that I have overpaid SS tax for the year. How should I proceed with this to avoid overpaying SS tax? We are filing married jointly.

6 Replies
JohnW152
Expert Alumni

Social Security Tax overpayment

When a single employer has withheld too much Social Security tax, you can't take a credit for the excess on your tax return.  You'll need to contact the employer.

Please see the TurboTax Help article Can I get a refund for excess Social Security tax withheld? for guidance.

gractrad
Returning Member

Social Security Tax overpayment

They did collect the correct amount. The other W2 shows uncollected SS Tax. When I enter that amount from box 12a Letter code M, it deducts that amount from my refund. Should I enter the amount from box 12a or leave it zero? That will ensure I do not overpay SS tax

Critter-3
Level 15

Social Security Tax overpayment

If both W-2 forms have different EIN numbers then leave the return as is ... the program is handling it correctly.  You will have an entry for the uncollected SS taxes and a credit for the excess which automatically offset. 

gractrad
Returning Member

Social Security Tax overpayment

OK, thanks

ech68
New Member

Social Security Tax overpayment

I saw that TT correctly noticed I had overpaid when calculating my Federal taxes, and accounted for it in my total refund accordingly, but during processing of my state forms (NJ resident and NY non-resident), the SS overpayment credit simply disappeared and is no longer in my refund or in the Federal summary page.

 

Is there some way to cause TT to recalculate that?

 

I went and check that my W2s still had the correct values (that indicate the overpayment, as there were 2 employers) but that credit fails to show up again.

ech68
New Member

Social Security Tax overpayment

Went back and checked my W2s, and noticed that even though they were definitely entered as both mine, which initially triggered the social security overpayment to be handled properly, somehow TT switched one of them to be for my wife (I definitely didn't, so there's a bug somewhere that caused it)... switching the W2 back to being mine again fixed the problem though.

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