Each year, a limit is set as to how much Social Security tax an individual should have withheld on his or her behalf.
Excess Social Security tax should be reported 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 $160,200 for 2023, $147,000 for 2022, $142,800 for 2021, and $137,700 for 2020. If this is not the case and an amount is being reported, please verify that your W-2's are entered correctly.
If an individual has more than the limit (indicated below) withheld and has 2 or more employers, the program will report the excess on Schedule 3, Line 11 which will be attached to your return.
This amount will be carried to line 31 of Form 1040 along with other credits and payments reported on your 1040 Form (this will be automatically calculated by the program within your return based on your entries).
- For 2023, the limit is $9,932.40
- For 2022, the limit is $9,114
- For 2021, the limit is $8,853.60
- For 2020, the limit is $8,537.40
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.
If only one employer is reported on the tax return, the employer must refund any excess social security taxes withheld directly to the taxpayer and it is not reported on your tax return.
For additional information, please reference Publication 505 here.