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  • Social security withholding excess amount

    Hi everyone
    Main Job W2 - maximized SS withholding
    Moonlighting Job W2 - additional $1,200 withheld

    Turbo tax tells me I need to ask for a corrected W-2 from my moonlighting job returning the excess withholding. I have had this situation in past years and the excess SS withholding is credited on Schedule 3.

    ​​​​​​Anyone know what the right answer is in this scenario? Anyone facing the same issue?

    Thanks!

    ​​​​​​

  • #2
    Number 2. You should get the excess withholding back as part of your return.

    Comment


    • #3
      I have had this multiple times, including 2020 and 2021. It gets credited to you when you prepare and file your return.

      Comment


      • #4
        Originally posted by VagabondMD View Post
        I have had this multiple times, including 2020 and 2021. It gets credited to you when you prepare and file your return.
        The credit is for your withheld amount. The employer for the moonlighting job does not.
        Some employers fail to distinguish between w-2 and 1099’s. Some part time gigs could really be 1099’s. 1099 checks normally are ran through an AP system. Employer’s loss.

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        • #5
          What is the context of; "Turbo tax tells me I need to ask for a corrected W-2 from my moonlighting job." ​​​Was that TurboTax software telling you or TurboTax support?

          An employer can not amend a W-2 for this reason unless they incorrectly deducted SS taxes. All employers are required to deduct SS taxes on W-2 Box 3 SS wages up to the maximum taxable earnings limit. Regardless of any other SS taxes paid to any other employer.

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          • #6
            TurboTax software stated I need to ask for a corrected W-2 and that I would likely need to extend my tax filing.

            I was wondering if there was a rule change that came into effect this year.

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            • #7
              I am not aware of any change regarding how excess SS taxes to a different employer are treated and I can't imagine this would be done.

              I think the most likely explanations are one of the following.
              • Your moonlighting employer is the same or affiliated employer with the same EIN on the W-2.
              • You mistakenly entered your primary employers EIN on the moonlighting employers W-2.
              • TurboTax has a bug.
              As unlikely as I think it is. Let me check to see if there were any changes for 2021 tax returns.

              Nope, no rule change. Excess SS tax still claimed as a credit on Form 1040, Schedule 3, Line 11.

              Comment


              • #8
                Double check your input. I cannot imagine TT would have such a blatant programming error, this situation is too common.
                Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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