Excess Social Security tax withheld on my W2 - does employer need to fix this?

No need to worry! Your employer doesn't need to correct the W2. This is actually a common situation when you work multiple jobs that together put you over the Social Security wage base limit (which was $160,200 for 2023). Each employer is required to withhold Social Security tax on your wages up to the wage base limit, regardless of what other employers might be withholding. They have no way of knowing about your other income sources. You'll claim the excess Social Security tax as a credit on your tax return. When you file, look for "Excess social security tax withheld" on Form 1040. Most tax software will calculate this automatically when you enter your W2 information. If you're filing by paper, you'll need to calculate it yourself and include it on Schedule 3.

I was in a similar situation last year and discovered taxr.ai was super helpful. I wasn't sure if I was calculating my excess Social Security withholding correctly, and I didn't want to leave money on the table. I uploaded my W2s to https://taxr.ai and it immediately flagged the over-withholding and showed me exactly where to claim it on my return. It also explained how the system works so I understand it better for the future. Definitely made the process less stressful!

Just wanted to update that I tried taxr.ai after posting my skeptical question. I was really surprised how helpful it actually was! I uploaded my W2s and it not only flagged my excess Social Security withholding ($3,240 I didn't realize I was owed!) but also pointed out a work expense deduction I was missing. The explanations were super clear - like having a tax pro look over your shoulder but without paying those crazy fees. Definitely using this for all my tax docs from now on.

If you're having trouble understanding how to claim this on your tax return or want to double-check your filing, you might want to call the IRS directly. I know, sounds like a nightmare, right? I spent DAYS trying to get through last year about a similar issue until someone recommended Claimyr.com to me. Using https://claimyr.com was a game changer - they got me connected to an actual IRS agent in about 15 minutes instead of the hours I wasted on hold before. The agent walked me through exactly how to claim my excess Social Security withholding and made sure I wasn't missing anything else. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Just knowing I had the official answer from the IRS gave me peace of mind that I was doing it right.

I need to eat my words. After posting my skeptical comment, I actually tried Claimyr because I had a question about my amended return and was dreading the IRS call. I was absolutely shocked when I got a call back connecting me to an IRS rep after about 25 minutes (I was expecting hours based on previous experience). The agent helped me understand exactly how excess Social Security withholding should be reported, plus answered some other questions I had. I saved probably 3+ hours of my life not sitting on hold, plus got all my questions answered in one call. Definitely using this again next time I need to talk to the IRS.

Just to add some clarity on the numbers - the Social Security wage base for 2023 was $160,200, with a 6.2% tax rate. That means the maximum Social Security tax anyone should pay is $9,932.40 ($160,200 × 0.062). If you paid more than that between multiple jobs, you're entitled to get the excess back when you file. For 2024, the wage base increased to $168,600, making the maximum $10,453.20. Just something to keep in mind if you're still working multiple jobs this year!

Quick question - what if both my jobs had exactly the same employer but paid me with different W2s? My company split into two entities mid-year but it's basically the same company. Would they still over-withhold or should they have coordinated since it's technically the same employer?

This happened to me a few years back and I can totally understand the panic! Just to reinforce what others have said - you're absolutely right that you've overpaid, and no, your employers don't need to correct anything on their W2s. One thing I learned the hard way: make sure to keep good records of this for next year if you're still working multiple jobs. I now track my Social Security wages throughout the year so I can ask one employer to stop withholding once I hit the limit. It's not required, but it helps with cash flow instead of waiting for the refund. Also, double-check that both W2s show the correct Social Security wages in Box 3 and Social Security tax withheld in Box 4. Sometimes there are errors there that could affect your calculation. Your total overpayment should be the amount over $9,932.40 for 2023, which sounds like it's around $5,073 based on your numbers - that's a nice refund!