| Publication 505 |
2000 Tax Year |
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.
Two or more employers.
If you worked for two or more employers in 2000, too much social
security tax or RRTA tax may have been withheld from your pay. You can
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 2000. Figure your excess
credit on the appropriate worksheet following the table. You must
figure any credit for each tax separately.
If you worked for both a railroad employer and a nonrailroad
employer, figure your credit on the Worksheet for Railroad
Employees.
Note.
If you are claiming excess social security or RRTA tax withholding,
you cannot file Form 1040EZ. You must file Form 1040 or Form 1040A.
Joint returns.
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 credit 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 |
$76,200 |
6.2% |
$4,724.40 |
| Railroad employees |
| Tier 1 railroad retirement
(RRTA) |
$76,200 |
6.2% |
$4,724.40 |
| Tier 2 RRTA |
$56,700 |
4.9% |
$2,778.30 |
Note.
All wages are subject to Medicare tax withholding.
Employer's error.
If any one employer withheld too much social security or RRTA tax,
you cannot claim the excess as a credit against your income tax. Your
employer must adjust this for you.
Worksheet for
Nonrailroad Employees
Unless you worked for a railroad during 2000, figure the credit on
the following worksheet.
Worksheet 3.1
| 1. |
Add all social security tax withheld (but not
more than $4,724.40 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 57 |
|
| 3. |
Add lines 1 and 2. If $4,724.40 or less, stop
here. You cannot claim the credit |
|
| 4. |
Social security tax limit |
4,724.40 |
| 5. |
Credit. Subtract line 4 from line 3. (See
Where to claim excess credit, next.) |
|
Where to claim excess credit.
If you file Form 1040A, include the credit in the total on line 40.
Write "Excess SST" and show the amount of the credit in the space
to the left of the line.
If you file Form 1040, enter the credit on line 61.
Example 3.4.
In 2000, Tom Martin earned $45,000 working for the Shoe Company and
$35,000 working for Leather Design. Shoe Company withheld $2,790 for
social security tax. Leather Design withheld $2,170 for social
security tax. Because he worked for two employers and earned more than
$76,200, he had too much social security tax withheld. Tom figures his
credit of $235.60 as follows:
Filled-in Worksheet 3.1 for Tom Martin
(Example 3.4)
| 1. |
Add all social security tax withheld (but not
more than $4,724.40 for each employer). This tax should be shown in
box 4 of your Forms W-2. Enter the total here |
$4,960.00 |
| 2. |
Enter any uncollected social security tax on
tips or group-term life insurance included in the total on Form 1040,
line 57 |
0 |
| 3. |
Add lines 1 and 2. If $4,724.40 or less, stop
here. You cannot claim the credit |
4,960.00 |
| 4. |
Social security tax limit |
4,724.40 |
| 5. |
Credit. Subtract line 4 from line 3. |
$235.60 |
Worksheet for
Railroad Employees
If you worked for a railroad in 2000, figure your credit on the
following worksheet.
Worksheet 3.2
| 1. |
Add all social security and tier 1 RRTA tax
withheld (but not more than $4,724.40 for each employer). Box 4 of
your Forms W-2 should show social security tax and box 14 should
show tier 1 RRTA tax. 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 57 |
|
| 3. |
Add lines 1 and 2. If $4,724.40 or less,
enter -0- on line 5 and go to line 6 |
|
| 4. |
Social security and tier 1 RRTA tax limit |
4,724.40 |
| 5. |
Subtract line 4 from line 3. (If less than
zero, enter -0-.) |
|
| 6. |
Add all tier 2 RRTA tax withheld (but not
more than $2,778.30 for each employer). Box 14 of your Forms W-2
should show tier 2 RRTA tax. Enter the total here |
|
| 7. |
Enter any uncollected tier 2 RRTA tax on tips
or group-term life insurance included in the total on Form 1040, line
57 |
|
| 8. |
Add lines 6 and 7. If $2,778.30 or less,
enter -0- on line 10 and go to line 11 |
|
| 9. |
Tier 2 RRTA tax limit |
2,778.30 |
| 10. |
Subtract line 9 from line 8. (If less than
zero, enter -0-.) |
|
| 11. |
Credit. Add lines 5 and 10. (See Where
to claim excess SST and RRTA, next.) |
|
Where to claim excess SST and RRTA.
If you file Form 1040A, include the credit in the total on line 40.
Write "Excess SST" and show the amount of the credit in the space
to the left of the line.
If you file Form 1040, enter the credit on line 61.
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