Each year, a limit is set as to how much Social Security tax an individual should have withheld on his or her behalf. If an individual has more than that limit withheld, he or she should report the excess on line 71 of Form 1040 (for tax years 2017 and prior). Beginning 2018 tax year, this amount should be reported on Schedule 5 of the 1040 (this will be automatically calculated by the program in your return based on your entries). Beginning in the 2019 tax year, this amount should be reported on Schedule 3, Line 11 and attached to your 1040 Form (this will be automatically calculated by the program within your return based on your entries).
- For 2019, the limit is $8239.80
- For 2018, the limit is $7,960.80
- For 2017, the limit is $7,886.40
- For 2015 & 2016, the limit was $7,347
- For 2014, the limit was $7,254
- For 2013, the limit was $7,049.40
- For 2012, the limit was $4,624.20,
- For 2010 & 2009, the limit was $6,621.60,
- For 2008, the limit was $6,324, and
- For 2007 and prior years, you would need to reference the IRS 1040 instructions for that tax year.
If an amount is being calculated on your return, this would mean that it has been reported within the entry screens that excess Social Security tax was withheld. Check your W-2 entries for the amounts entered in box 4 for each W-2. Also, if filing jointly, be sure that the proper individual has been selected as the "Employee" (left side of the W-2 entry screen) for each W-2. By incorrectly listing the W-2's, Excess Social Security could be calculated.
***Generally, the only time Excess Social Security tax should be reported is if you, or your spouse if filing a joint return, had more than one employer for the tax year and, individually, you (or your spouse) had total wages of more than $132,900 for 2019, ($128,400 for 2018), or ($127,200 for 2017). If this is not the case and an amount is being reported, please verify that your W-2's are entered correctly.
For additional information, please reference Publication 505 here.