IRS Tax Forms  
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.

Pencil:





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.

Pencil:





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.

Previous| First | Next

Publication Index | IRS-Forms Main | Home