I have a tricky situation at hand. For 2007, the social security deductions from income are 6.2% upto the first 97500 of the income. So, the maximum SS tax one pays per year is $6045.
I was with employer A till August. After that I moved to employer B. My SS contributions at employer A were $5800. Now, my question is, how would the employer B come to know that I am nearing the maximum Social Security contribution and they should stop SS deductions after that? How would B know that I have already paid $5800 while at emplyer A?
2007-09-26 16:11:16 · 6 answers · asked by zapatazoom 1 in Business & Finance ➔ Taxes ➔ United States
Employer B won't know, and has to keep taking out social security until you reach the limit with them. You will have excess social security withheld but will get that as a credit on your 1040 return when you file it.
2007-09-26 16:18:55 · answer #1 · answered by Anonymous · 3⤊ 0⤋
Employer B will still deduct up to the maximum, they won't know about your previous SS taxes paid, and will effectively double up on your SS taxes. When you file your 1040, the excess SS withheld will be a credit to your federal income tax paid.
2007-09-27 06:25:21 · answer #2 · answered by Anonymous · 2⤊ 0⤋
All your employers are required to withhold SS and Medicare. If you exceed the maximum because of having 2 or more employers, you will claim a refundable credit on your 1040.
You will report the excess on line 67 of 1040. The following link is to a PDF copy of form 1040 for 2006.
http://www.irs.gov/pub/irs-pdf/f1040.pdf
The only time you would get a refund from your employer is if you only had one employer and he over withheld.
2007-09-26 16:19:36 · answer #3 · answered by Mark S 5 · 5⤊ 0⤋
Employers do not coordinate your SS withholding. Each employer will withhold 6.2% of your wages up to $97,500.
If two employers have each withheld 6.2% on your wages up to $97,500, and your total SS withholding is more than $6,045, then you have excess SS taxes paid. The excess is paid back to you when you file your tax return.
When you enter the SS withholding from your W-2's into you tax software, the overpayment will be taken care of and treated as a payment of income taxes.
2007-09-26 17:18:41 · answer #4 · answered by ninasgramma 7 · 4⤊ 0⤋
Yes, the new employer will deduct ss unless you reach the limit at their company.
If you end up overpaying for the year because you had multiple jobs, you claim the overpayment back on your tax return. Last year it was line 67 on form 1040.
2007-09-26 16:46:08 · answer #5 · answered by Judy 7 · 4⤊ 0⤋
Social Security Disability Evaluation - http://DisabilityHelp.siopu.com/?yIh
2017-04-06 01:58:20 · answer #6 · answered by Santiago 3 · 0⤊ 0⤋