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June 6, 2019
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Too much social security tax was withheld. It says to calculate based on box 3 (ss wages). Should I also include box 7 (ss tips) and then figure the 6.2% ?

  • June 6, 2019
  • 1 reply
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Best answer by DianeW777

Yes, you are correct.  Tips that were reported to your employer, and listed in box 7, of your W2, would be included when calculating social security and medicare taxes.

This link is for the employers of tipped employees:  IRS Topic 761-Tips Withholding & Reporting

Withholding Taxes:  When you receive the tip report from your employee, use it to figure the amount of social security, Medicare and income taxes to withhold for the pay period on both wages and reported tips. You're responsible for paying the employer's portion of the social security and Medicare taxes.

1 reply

DianeW777Answer
June 6, 2019

Yes, you are correct.  Tips that were reported to your employer, and listed in box 7, of your W2, would be included when calculating social security and medicare taxes.

This link is for the employers of tipped employees:  IRS Topic 761-Tips Withholding & Reporting

Withholding Taxes:  When you receive the tip report from your employee, use it to figure the amount of social security, Medicare and income taxes to withhold for the pay period on both wages and reported tips. You're responsible for paying the employer's portion of the social security and Medicare taxes.
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May 11, 2020

Then why do I have to pay for the Turbo Tax Deluxe $60 because of this? It is a programming glitch.