Tax Breaks Social Security Secrets From Joe Mastriano, CPA
Tax Breaks Social Security Ideas
If you had two or more employers in the same tax year, too much Social Security tax may be deducted from your income. You can get back the excess Social Security that has been withheld when you file your tax return.
Calculating Your Social Security Tax
When your Social Security tax is calculated, a fixed rate of 6,2 is applied to your income. For example, you have worked for two employers and earned $120,000 and $120,000, both of them will deduct the maximum OASDI (6,2 % X 120,000) from your wages. In accordance with the law, you are liable for only $7,440 and you are eligible to receive a refund on the other $ 7,440 that has been held.
Claiming Credit For Overpaid Social Security Taxes?
File Form 1040. You can claim the excess of your Social Security on line 69 of the form.
Refunds For Excess Of Social Security Tax
The excess Social Security tax will be refunded to you, even if you owe no taxes.