Married filing jointly, three employers/W-2's between us. Turbotax claims our MAXIMUM Social Security tax should be ~$8500, but the sum of our three W-2 box-4's is nearly $11K. Turbotax is SUPPOSED to automatically add the over-taxed sum back to our refund -- and indicate the overage on 1040 Sched 3, line 10 -- but our line 10 is BLANK. Why isn't Turbotax crediting us for the over-payment?
Here's the best part: all of this is going on BEFORE we add the complication of deferred Social Security tax collection: one of our employers is presently collecting another $1100 of deferred 2020 Social Security tax -- driving our total Social Security tax bill to $12K+ -- when it should be capped at ~$8500.
Need some answers!
The maximum Social Security tax limit of $8537.40 is per taxpayer, not per tax return.
If either one of you exceeds the total amount when you consider your W-2s from different employers, then the overage will be automatically refunded as part of your tax return.
Take a look at the following TurboTax article for more information: Can I get a refund for excess Social Security tax withheld?
Turbo Tax Help SAYS it will be managed automatically BUT it is not doing it. Instead, I get the following message:
You may be due a refund from your employer
Double-check the Social Security tax withheld to make sure we’ve got the right amounts. Select Back to make any changes to your forms. If these amounts match your W-2, you’re entitled to a refund from your employer. Your employer should also give you a corrected W-2 (Form W-2c) with the updated holding amount.
My employer says my tax preparer should take care of it. TurboTax Help says TurboTax will take care of it. It does not. I get the message posted above.
Need help.
One other note. A co-worker has the EXACT same circumstances and also uses TurboTax. It is working for him as expected.
TurboTax will add the excess social security tax withheld and add it as credit in line 11 of Schedule 3.
Please review your W-2 entries and take a look at your tax return.
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Unfortunately, I already tried that. There IS no Schedule 3.
Here is how to check if you did overpay Social Security tax due to multiple jobs:
If both you and your spouse had wage income in 2021, and one of you held two jobs. Separate the two w-2 forms that belong to you or your spouse, whoever held two jobs, add the dollar amounts in box 4 of the two w-2 forms, if the sum is over $8537.40, then you overpaid, otherwise, you did not overpay and there won't be any refund applicable.
I already know I overpaid. TurboTax already knows I overpaid. The problem is TurboTax is not accounting for the overpayment as it says it will. TurboTax help says it will adjust on Schedule 3. There IS no Schedule 3. (Yes, I already generated all the forms as .PDF and looked.) There is a Schedule 1, Schedule 2, then it goes directly to a Schedule C, etc., etc.
I'm using TurboTax Home & Business.