Contributed by: Henry, FreeTaxUSA Agent, Tax Pro
If you work for an employer, Social Security tax is typically withheld from your wages. These taxes help fund federal programs for retirement, disability, and survivor benefits.
The Social Security tax rate is 6.2% for employees. Each year, there’s a maximum wage base subject to this tax. For 2026, the wage base limit is $184,500, which means any earnings above this amount aren’t taxed for social security.
Example: Mike works for one employer during the year and earns $250,000 in wages. Social Security tax is withheld only on the first $184,500 ($184,500 x 6.2% = $11,439). The remaining $65,500 of Mike’s wages isn’t subject to Social Security tax.
If you're filing a joint return, you and your spouse must calculate your Social Security tax separately. Each of you is individually subject to Social Security tax on wages up to the annual wage base limit.
Multiple employers and excess withholding
If you work for more than one employer during the year, each employer is required to withhold Social Security tax up to the annual wage base limit. This can result in excess Social Security tax withholding if your combined wages exceed the limit. When this happens, you can claim a credit on your tax return for the excess amount withheld.
FreeTaxUSA software automatically calculates this credit based on the Social Security tax withheld, as reported on your W-2 forms. If the total amount withheld is more than the annual maximum, you'll receive a credit for the excess on Schedule 3, line 11.
Example: Sarah works for two employers. Employer #1 pays her $200,000, and Employer #2 pays $50,000. Employer #1 withholds Social Security tax on $184,500 of the $200,000 they pay. Employer #2 withholds Social Security tax on $50,000. Neither employer takes into consideration the Social Security tax withheld by the other employer. As a result, Sarah pays Social Security tax on $184,500 + $50,000 = $234,500 of her wages, which is more than the limit. To correct this mistake, Sarah claims a credit on her tax return for the excess Social Security tax withheld.
Single employer and excess withholding
What about a situation with one employer who withheld too much tax? Having multiple employers is the most common reason for excess Social Security tax withholding. In rare cases, a single employer may withhold too much by mistake. If that happens, you won’t claim the credit on your tax return. Instead, you’ll need to contact your employer to request a refund of the excess amount.
Example: Harvey only has one job and earns $90,000 in wages. Due to an accounting error, his employer withholds $5,700 in Social Security taxes instead of the correct amount of $5,580. To resolve the issue, Harvey needs to contact his employer to correct the mistake and adjust the withholding.
If you find yourself in this situation, but your employer won’t refund the excess Social Security tax, you can get the money back directly from the IRS by filing Form 843, Claim for Refund and Request for Abatement