skip navigation

Search Help
Navigation Help

Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #

Forms
Publications

Comments
About Tax Map

left arrowPrevious Page: Publication 505 - Tax Withholding and Estimated Tax - Estimated Tax
right arrowNext Page: Publication 505 - Tax Withholding and Estimated Tax - Underpayment Penalty for 2004
Use  left arrowright arrow to find additional instances of index items.

Taxmap/pubs/p505-019.htm#TXMP7c881720
Excess Social Security  
or Railroad Retirement Tax Withholding


 spacer

Excess Social Security or Railroad Retirement Tax Withholding

Most employers must withhold social security tax from your wages. The federal government and state and local governments in some cases do not have to withhold social security tax from their employees' wages. If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax.


Taxmap/pubs/p505-019.htm#TXMP567453b2
Two or more employers.


 spacer

If you worked for two or more employers in 2004, too much social security tax or RRTA tax may have been withheld from your pay. You may be able to claim the excess as a credit against your income tax when you file your return. Table 3.1 shows the maximum amount that should have been withheld for any of these taxes for 2004. Figure the excess withholding on the appropriate worksheet following Table 3.1. Use Worksheet 3.1 to figure excess social security tax; use Worksheet 3.2 to figure excess tier 1 RRTA tax; use Worksheet 3.3 to figure excess tier 2 RRTA tax.

Taxmap/pubs/p505-019.htm#TXMP62c41a45
Note. If you worked for both a railroad employer and a nonrailroad employer, use Worksheet 3.2 to figure excess social security and tier 1 RRTA tax.

Taxmap/pubs/p505-019.htm#TXMP05dd62c7
Joint returns.		 spacer

If you are filing a joint return, you cannot add any social security or RRTA tax withheld from your spouse's income to the amount withheld from your income. You must figure the excess separately for both you and your spouse to determine if either of you has excess withholding.
Table 3.1
Type of Tax Maximum wages subject to tax Tax rate Maximum tax to be withheld
Social security $87,900 6.2% $5,449.80
Tier 1 railroad retirement (RRTA) $87,900 6.2% $5,449.80
Tier 2 RRTA $65,100 4.9% $3,189.90

Taxmap/pubs/p505-019.htm#TXMP4ae0f085
Note.All wages are subject to Medicare tax withholding.

Taxmap/pubs/p505-019.htm#TXMP60e1c037
Employer's error.


 spacer

If any one employer withheld too much social security or RRTA tax, you cannot claim the excess as a credit against your income tax. The employer should adjust the tax for you. If the employer does not adjust the overcollection, you can file a claim for refund using Form 843.


Taxmap/pubs/p505-019.htm#TXMP1f3a6ffc
Worksheet for  
Nonrailroad Employees


spacer

Unless you worked for a railroad during 2004, figure the excess on the following worksheet. Taxmap/pubs/p505-019.htm#w15008e04
Worksheet 3.1
1. Add all social security tax withheld (but not more than $5,449.80 for each employer). This tax should be shown in box 4 of your Forms W-2. Enter the total here       
2. Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 62       
3. Add lines 1 and 2. If $5,449.80 or less, stop here. You cannot claim the credit.       
4. Social security limit 5,449.80
5. Excess. Subtract line 4 from line 3.       


Taxmap/pubs/p505-019.htm#TXMP03f2a8c4
Where to claim credit for excess social security withholding.


 spacer

If you file Form 1040, enter the excess on line 66. You cannot claim excess social security tax withholding on Form 1040A or Form 1040EZ.


Taxmap/pubs/p505-019.htm#TXMP7111c200
Example 3.4.

In 2004, Tom Martin earned $52,000 working for Company A and $40,200 working for Company B. Company A withheld $3,224 for social security tax. Company B withheld $2,492.40 for social security tax. Because he worked for two employers and earned more than $87,900, he had too much social security tax withheld. Tom figures his credit of $266.60 as follows:

Taxmap/pubs/p505-019.htm#w15008e05
Filled-In Worksheet 3.1 for Tom Martin (Example 3.4)
1. Add all social security tax withheld (but not more than $5,449.80 for each employer). This tax should be shown in box 4 of your Forms W-2. Enter the total here. $5,716.40
2. Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 62 0
3. Add lines 1 and 2. If $5,449.80 or less, stop here. You cannot claim the credit. 5,716.40
4. Social security tax limit 5,449.80
5. Excess. Subtract line 4 from line 3. $266.60


Taxmap/pubs/p505-019.htm#TXMP29ef8e8a
Worksheets for  
Railroad Employees


 spacer

If you worked for a railroad during 2004, figure your excess withholding on the following worksheets.

Taxmap/pubs/p505-019.htm#w15008e06
Worksheet 3.2
1. Add all social security and tier 1 RRTA tax withheld (but not more than $5,449.80 for each employer). Social security tax should be shown in box 4 and tier 1 RRTA should be shown in box 14 of your Forms W-2. Enter the total here       
2. Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 62       
3. Add lines 1 and 2. If $5,449.80 or less, stop here. You cannot claim the credit.       
4. Social security and tier 1 RRTA tax limit 5,449.80
5. Excess. Subtract line 4 from line 3.       

Taxmap/pubs/p505-019.htm#TXMP5b980255
Where to claim credit for excess tier 1 RRTA withholding.


 spacer

If you file Form 1040, enter the excess on line 66. You cannot claim excess tier 1 RRTA withholding on Form 1040A or Form 1040EZ.

Taxmap/pubs/p505-019.htm#w15008e07
Worksheet 3.3
1. Add all tier 2 RRTA tax withheld (but not more than $3,189.90 for each employer). Box 14 of your Forms W-2 should show tier 2 RRTA tax. Enter the total here       
2. Enter any uncollected tier 2 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 62       
3. Add lines 1 and 2. If $3,189.90 or less, stop here. You cannot claim the credit.       
4. Tier 2 RRTA tax limit 3,189.90
5. Excess. Subtract line 4 from line 3.       

Taxmap/pubs/p505-019.htm#TXMP11ffe962
How to claim refund of excess tier 2 RRTA .


spacer

To claim a refund of tier 2 tax, use Form 843, Claim for Refund and Request for Abatement. Be sure to attach a copy of all of your W-2 forms.

left arrowPrevious Page:  Publication 505 - Tax Withholding and Estimated Tax - Estimated Tax
right arrowNext Page:  Publication 505 - Tax Withholding and Estimated Tax - Underpayment Penalty for 2004
Use   left arrowright arrow  to find additional instances of index items.