Important Change

Rate reduction credit. You may qualify for the rate reduction credit if you did not receive the maximum advance payment in 2001. See Rate Reduction Credit, later.

Excess withholding of social security tax and tier 1 railroad retirement tax. Social security and tier 1 railroad retirement tax (RRTA) are both withheld at a rate of 6.2% of wages. The maximum wages subject to this tax increased to $80,400 in 2001. If you had two or more employers and they withheld too much social security or RRTA tax during 2001, you may be entitled to a credit of the excess withholding. For more information about the credit, see Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld under Refundable Credits, later.

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