All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Reply
Pioneer
Posts: 1
Registered: ‎06-30-2017

H&R Block Incorrectly Calculated Excess Social Security

Hello

 

First time running into a problem with the software and im wondering if yall could direct me in the right direction.

 

I just got married in 2016 and My husband and I are filing jointly. After putting our info into the tax software it says we have a $2000 excess social security tax credit. However after reading the IRS rule is states "For tax year 2016, you'll have excess Social Security withholding if the sum of multiple employers' withholding exceeds $7,347.00 per taxpayer"

 

Our withholding for social security after adding up all of our w2's does not exceed 7347.00 per taxpayer so how is it coming up with this number?

 

At this point I have already received a letter from the IRS asking for more information so im trying to understand if this is valid or if the software incorrectly calculated this somehow. If the software is messed up where should I go from here?

 

Thanks

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: H&R Block Incorrectly Calculated Excess Social Security

Hi djkyle65,

 

Welcome to the H&R Block community.

 

Only the first $118,500 of each taxpayer's income is subject to social security tax.  The social security tax is 6.2%, and 6.2% of $118,500 is $7,347 so that's where the number is coming from.

 

For married couples filing jointly whether or not you have excess social security is determined separately.  Does one of you have an income of more than $118,500 and social security withheld on the entire income amount?  If so then that could be where this is coming from.

 

Another possibility is that a number was entered incorrectly in the tax software.  I suggest double-checking all of your entries.

 

Finally, I would also recommend having a tax professional look over the return and the letter before you reply to it as one of the more recent IRS scams does involve fake letters.  This of course doesn't sound like a scam but you can't be too careful.  Also, the tax professional may be able to help you find the issue if you aren't able to figure it out on your own.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Highlighted
Associate (Neighbor)
Posts: 77
Registered: ‎03-22-2016

Re: H&R Block Incorrectly Calculated Excess Social Security

Dear djkyle65:

 

One possibility is that you may have inadvertently allocated one of the W-2s to the wrong partner, i.e. to the "taxpayer" rather than to the "spouse" or vice versa.   Check your data input to make sure.

 

Simon Tung

(Tax Preparer)