Question

I have received a notice from the IRS stating excess social security tax withheld and a balance due. Why was this not calculated when I prepared my taxes?

Forum|Forum|6 years ago
October 16, 2019
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Employee

This usually happens if you file a joint return and attribute all of the income for both spouses to only one of the spouses. And if you did that, it would have given you a larger refund than you should have received, so now the IRS wants some of it back.

What tax year is it for? Is it for 2017 or an earlier year?

If 2017 or earlier: (most likely)

EXCESS SOCIAL SECURITY

Look at line 71 of your tax return. If there is an amount there, then you claimed to have paid excess Social Security. That could happen when you enter all of the W-2 income under only one name on a joint return. The IRS refunds the “excess” Social Security. Now they have matched your W-2’s to the return and they want that money back.

Check the worksheets from your tax return to see if you entered all of the W-2 income for both spouses under only one of the names on a joint return. That is the most common reason for this problem. Unfortunately, it is user error. As you prepare your return, several screens alert you to it.

2016 Maximum $7347 2017 Maximum $7886 2018 $7960.80 (?)

2019 $8239.80

And if you did in fact make the mistake of entering all of the income for your W-2’s under only one spouse’s name, you may have made that same mistake on the next year’s tax return if you transferred all your data over from the past year to the next. Check to see—before you get another IRS letter

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

T

tmthompsonAuthor

I looked at the return and I'm not sure how to determine if everything was entered under one person but there is an amount listed under line 71. However, based on what you said about $7886 being the max for 2017, looking at my husbands' W2 - he has $7886.40 as being withheld and then my employer withheld $2453.70. So if I'm understanding this correctly, his employer withheld too much? We should have been at $7886 together correct? Thank you in advance for your help in clarifying.

VolvoGirl

Employee

No. His employer took out the right amount.

And your employer took out the right amount.

The Max SS for 2017 is $7,886.40 PER PERSON.

But you assigned his W2 and your W2 to the same spouse so it looked liked one person went over the max. So line 71 probably has your $2,453 on it, right?

Then better check your 2018 return Schedule 5 line 72 and see if the W2s transferred over wrong and you have excess SS on 2018 also.

Then for next year either do not transfer from 2018 or delete all the W2s and enter them new, paying attention which spouse.