My company has withheld too much Social Security Tax?
I'm using TurboTax 2010 to help estimate my January 15th quarterly payment. According to TurboTax, my employer has withheld too much Social Security Tax.
I have three means of income:
1st W2 Job, $2K
2nd W2 Job, $23K (*This is the job to which TT is referring.)
Self-Employment, $35K [after deductions/expenses]
Even with my combined incomes, I thought I was faaaar from the Social Security ceiling [~$106K], so I am extremely confused about this. Can anyone clarify, or is TT mistaken?
Thank you very much!
According to TT, anything over $0 is "too much" so this isn't an issue of pennies.
- Anonymous1 decade agoFavorite Answer
Your income is too low for SSA to be in excess.
I'm willing to bet that your W-2s are not nice round numbers and include pennies in the year to date total. TT and TC have problems correctly rounding numbers and will state the W-2 has an error on it when it doesn't.
Substitute the nearest dollar and manuall calculate 6.2% and I'll bet the error goes away. (MC is 1.45%)
In the HIGHLY unlikely event that an employer did withhold more than 6.2%, you get the refund from them. The IRS only helps with a refund when the excess is due to multiple jobs. (TRO likes to guess and this is one of those guesses.)
Edit. So, I guess there are a lot of bugs waiting to be fixed this year.
(Plus all those changes from congress.)
For estimation purposes, change it to $0 and plug away.
PS, I also buy software early to estimate. I guess it I will be back to Taxcut this year. I bought TT by accident last year. Usually the are very similar and it shouldn't have made a difference.
- StephenWeinsteinLv 71 decade ago
The correct amount for a $23K W-2 job is over $1000, so TT is definitely wrong.
This is the second question I have seen in the last few minutes about TurboTax 2010 being wrong about something. It might not be a good idea to use it until they finish fixing the problems.
- 4 years ago
you're excellent. if you're not any more paying taxes into the gadget then you definately are not any more collecting social safe practices credit or income in course of retirement. And relying on different factors, this may result your skill to qualify for Medicare. also the corporate will pay into the gadget to boot. there is not any blanket exemption for workers of non-revenue. workers of churches, workers of colleges who're also scholars, and the Amish must be the truthfully ones no longer paying FICA taxes. also contractors don't have the taxes withheld from their paychecks, yet pay it with their tax go back. you truthfully isn't required to come back up with a tens of 1000's of money examine without note. in the adventure that they do settle on, you would accept time to pay up. and also you may wish that paid in for once you retire.
- acmeravenLv 71 decade ago
Your problem is Turbotax; that is what got the secretary of the treasury in trouble for 50K plus in unpaid taxes. Go to IRS.GOV and download a free Pub 17 to read up on the subject. Use a pen and piece of paper and run the numbers; don't trust your financial fate to software.
- How do you think about the answers? You can sign in to vote the answer.
- JudyLv 71 decade ago
If TT is saying that anything at all is too much, there's a bug someplace. You'd have 7.65% total taken for ss and medicare on your W-2 jobs: 6.2% of that is for ss.
- troLv 71 decade ago
SS for $2000 would be $124, Medicare, $29
for the $23000, SS would be $1,426, Medicare $333.50
if one of them has withheld too much you need to demand they correct it
however, if both have withheld correctly and any over payment from multiple employers has occured you indicate this on your tax return