How to Use Payment of FICA Taxes for an IRS Refund
In 1990, FICA tax was split into separate wage bases for social security and Medicare taxes. Many people still refer to the two taxes collectively as FICA. There is no limit to the wages Medicare tax applies to. There is, however, a wage base limit for social security tax. Per the Social Security Administration (SSA), the limit on wages subject to social security tax "generally increases each year with increases in the national average wage index." If you work for more than one employer during the same calendar year, it is possible for you to be over-withheld for social security tax. Each of your employers is required to withhold social security tax up to the maximum. By reporting the excess payment on your Form 1040 tax return, you will receive a refund of the over-withheld amount. Follow the steps below to determine if you are due a refund of social security tax. If you are married, perform these steps separately for you and your spouse.
Other People Are Reading
Instructions
-
-
1
Multiply the current year social security wage base limit times 6.2 percent. This is the maximum amount of social security tax an individual should pay.
-
2
Add together the total amount of social security tax withheld reported in box 4 of your W-2 forms.
-
-
3
Subtract the total social security tax per your W-2s (step 2) from the maximum social security tax (step 1).
-
4
Report any excess social security tax you paid on Form 1040, line 65. This amount will be treated as an additional tax payment and increases any refund you are due or decreases any amount you owe.
-
1
Tips & Warnings
The current year social security wage base can be found on the IRS website or within the Form 1040 instructions.
