Turbo Tax Business Not Computing Excess SS tax correctly with two W-2 and Schedule C income

Forum|Forum|11 months ago
April 14, 2025
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With two W-2 jobs, plus Schedule C income. One of the W-2 hits the Social Security Tax Maximum. Thus, the second W-2 Social Security Tax is Excess, which Turbo Tax Business detects and fills out the form (Schedule 3) correctly. But with the Schedule C income, it computes the Social Security Tax for that correctly, but that is excess tax too. Turbo Tax Business does not declare that excess tax anywhere. Is this a bug in the software or am I missing something or do I have to fill out a form that Turbo Tax does not fill out automatically?

TurboTax Business Windows

Best answer by VolvoGirl

I have Windows H& B too.

In your test return did you enter 2 W2s? Because the Schedule SE accounts for the max SS on the W2. I entered 1 W2 for the max and entered 10,000 for schedule C. I didn't get any excess SS because it entered the W2 168,600 on line 8a so line 10 was blank and only had the $268 Medicare on line 11. What are on your SE lines?

So be sure both W2s are for the same person. No one else has posted this before. Try updating your program. Go up to Online-Check for Updates.

It should be right in your real tax return. You got the excess on 2 W2s but as I said Schedule SE takes the W2 wages into account and doesn't give you any Social Security tax on SE line 10 in the first place. Here's my Single test with only 1 W2 but it should be the same with 2 W2s. The max 168,600 for both W 2s is on line 8a. You only pay the Medicare tax $268.

PatriciaV

Employee

Please clarify which version of TurboTax you are using: TurboTax Online or TurboTax Desktop? If you're using TurboTax Desktop, which version? Windows or Mac?

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Servant714Author

Using Turbo Tax Desktop on Windows, the Business edition.

VolvoGirl

Employee

Still not clear. Are you using the Windows Home & Business version for personal returns with Schedule C OR the separate Windows Business program? I don't think the Business program does schedule C.

Are you married? Yes make sure all the W2s and sch C are assigned to the right spouse.

Are you sure Schedule SE (for the tax on schedule C) is adding in the full social security tax? You still pay SE tax on the Medicare part. If you also have W2 income, you have to break out the Social Security and Medicare taxes. Only the Social Security part maxes out.

The SE tax includes what you already paid in from your W2 so your schedule SE tax will only be the difference up to the max amount of $10,453.20 for social security. The max for social security for 2024 is 6.2% of wages plus schedule C net profit up to $168,600. Medicare is 2.9% (both er & ee parts) of all wages & schedule C profit - no max.