Excess Social Security - 3 Employers
Searching this community, I found from a previous answer that FTU will automatically credit any excess social security paid by my employers. I know that if there was just one employer, I would have to seek recourse through them but for 2024, I have three employers. All three overpaid by quite a bit, per my FTU W2 summary page. Yet, the credit does not appear to be totaling when it comes to my refund. Is this a bug?
Best Answer
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We're talking about two different things. If an individual employer overpaid for SS, you need to fix it with that employer. But before you do that, check to make sure you entered everything correctly. Are the numbers in Boxes 1 and 3 of your W-2s different, and did you enter them correctly? Are the amounts in Box 4 more than 6.2% of the amount in Box 3 on all three W-2s?
What I'm talking about (and the IRS can fix) is when three different employers put you over the $168,600 maximum for SS in the year. The amount you had withheld that's in excess of the amount due on $168,600 can be refunded to you via your tax return.
Answers
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It's highly unlikely that all three employers all overwithheld your Social Security. Did you make over $168,600 at each employer?
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No. In fact, the one employer FTU flagged as having overpaid into Social Security for 2023 and I just now realized this as well. It was part of a PEO, which … overpaying into Social Security seems par for the course? FTU flagged all three W-2s with an overpayment message.
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Thanks for all your helpful feedback. I needed some time to not think about this, then come back to it.
I did check all the boxes on all the W2 and also ran all the math. On each W2, exactly 6.2% was withheld on each one. Your last bit was the kicker and I did a some different Googling: "For tax year 2024, you'll have excess Social Security withholdings if the sum of multiple employers' withholdings exceeds $10,453.20 per taxpayer."
This is exactly what has happened. I am over this excess (and, per your comment, over the 6.2% on $168,600.) FTU doesn't seem to be applying this overage to my refund/payment on the Summary screen. -
Look at the printed return. Schedule 3, Part II, line 11. That's where the credit is. Is there an entry there?
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It is.
Edit: Ok, I think I've got my ducks in a row now. I appreciate all your help .. I think just getting that flag about over payment led me on a wild goose chase.