Too much social security tax withheld on W2, how do I get it corrected?

You can claim the excess Social Security tax withheld when you file your tax return - you don't need a corrected W-2. The IRS Form 1040 handles this situation specifically. When you file, the tax software should calculate the correct Social Security tax based on the annual limit and compare it to what was actually withheld. Any excess will be treated as a payment you've made and will either increase your refund or decrease any amount you owe. In TurboTax, it should automatically detect this when you enter your W-2 information. Just make sure all the information from your W-2 is entered correctly, including the Social Security wages in Box 3 and the Social Security tax withheld in Box 4. TurboTax should do the math and credit you for the overpayment.

I had this exact same issue last year! I spent hours trying to get my employer to fix it until I found taxr.ai (https://taxr.ai) which helps decode all those tax documents and problems. I uploaded my W2 there and got instant clarification that this was actually something I could fix myself when filing - didn't need a corrected W2 at all. Their system specifically identified the Social Security overcollection and showed me exactly where it would be handled on the tax forms. Saved me from annoying my payroll department with unnecessary correction requests.

Just wanted to follow up - I decided to try taxr.ai after my initial skepticism and I'm actually impressed! Uploaded my W2 with the Medicare withholding issue and it immediately identified that I was subject to the Additional Medicare Tax because my income was over $200k. Never would have figured that out myself. The explanation was super clear and showed me exactly where this would be handled on Form 8959. Saved me from making an embarrassing call to my company's payroll department. The document security seemed solid too - got confirmation when my docs were deleted after analysis.

If you're still having issues with your employer or the IRS about this, I highly recommend Claimyr (https://claimyr.com). I spent WEEKS trying to get someone at the IRS on the phone about a similar withholding issue last year. Claimyr got me connected to an actual IRS agent in under 45 minutes when I had been trying for days. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed exactly what others here are saying - you claim the excess Social Security tax when filing your return. Having that official confirmation directly from the IRS gave me peace of mind though. Worth it just to avoid the frustrating hold music!

I need to publicly eat my words. After being super skeptical about Claimyr, I tried it yesterday for my amended return issue that's been hanging for 7 months. Got connected to an actual IRS agent in about 35 minutes while I was cooking dinner. The agent pulled up my file and found that my amended return had been received but was stuck in processing. They actually put a note on my account to expedite it! No way I would have gotten this resolved without speaking to someone directly. The service works exactly as described in that YouTube video. They navigate all the IRS phone menus and wait on hold, then call you when an agent is about to take your call. Completely legit and worth every penny for the headache it saved me.

Double check if you hit the cap mid-year and then changed jobs. Each employer has to withhold SS tax until you hit the cap with THEM specifically, not based on your total earnings across employers. Had this happen to me in 2022 - Company A withheld up to about $100k, then I switched to Company B who withheld on another $120k because they had no knowledge of my previous withholding. Got it all back when filing though.

Not sure if this helps but I remember reading something about the employer portion and employee portion being different? Maybe the amount is actually correct? Can someone who actually knows explain this?

This is a really common issue, especially when payroll systems get updated or companies switch providers. The good news is that you're absolutely right - the Social Security wage cap for 2023 was $160,200 (not $132,900, which was the 2019 limit), so if you earned $142,500 you should have had Social Security tax withheld on your full income. Wait, let me double-check that... actually, you mentioned this was for 2023 taxes but said the cap was $132,900. The 2023 cap was indeed $160,200, so if your income was $142,500, your employer was correct to withhold Social Security tax on the full amount. Are you maybe looking at an older year's cap limit? Could you clarify which tax year this W-2 is for? That would help determine if there's actually an overwithholding issue or if the withholding was correct.

I think there's some confusion about the Social Security wage caps in this thread. Let me help clarify: The Social Security wage base limits have been: - 2021: $142,800 - 2022: $147,000 - 2023: $160,200 - 2024: $168,600 @d50f9aae8163 mentioned earning $142,500 and referenced a cap of $132,900 "for 2023" - but $132,900 was actually the 2019 limit. If this W-2 is for the 2023 tax year, then your employer was correct to withhold Social Security tax on your full $142,500 income since it's well below the $160,200 limit. Could you double-check what tax year your W-2 covers? The year should be clearly marked on the form. If it's 2023, there's no overwithholding. If it's for an earlier year where your income exceeded that year's cap, then you'd have a legitimate claim for excess withholding. This is a common source of confusion since the caps change annually and it's easy to mix up which year's limit applies to which W-2.

There's definitely some confusion about the Social Security wage caps in this thread. Based on the information provided, if your W-2 is for the 2023 tax year and you earned $142,500, your employer was actually correct to withhold Social Security tax on your full income. The Social Security wage base for 2023 was $160,200, not $132,900 (which was the limit for 2019). Since your earnings of $142,500 are well below the 2023 cap, there was no overwithholding. I'd recommend double-checking the tax year on your W-2 form - it should be clearly marked. If it's indeed 2023, then your employer followed the correct procedures and you don't need to take any action. If it's for a different tax year where your income actually exceeded that year's specific cap, then the advice about claiming excess Social Security tax on your return would apply. This is a very common source of confusion since the wage caps increase almost every year, and it's easy to find outdated information online or mix up which year's limits apply to your specific situation.

Just to add some perspective - I've seen this exact confusion many times in tax season! The Social Security wage caps change annually, and it's super easy to accidentally reference the wrong year's limit when researching online. If your W-2 is indeed for 2023 and shows $142,500 in wages, your employer was correct. The 2023 Social Security wage base was $160,200, so you were well under the limit and should have had SS tax withheld on your full income. However, if this W-2 is for an earlier tax year (like 2021 when the cap was $142,800), then you would have a legitimate overwithholding situation. The key is checking the tax year box on your W-2 form. Don't feel bad about the confusion - the IRS publishes these limits annually and they're not always easy to find. Once you confirm the correct year, you'll know exactly whether action is needed or if everything was handled properly by your employer.