- 1). Determine if the overpayment was employer error. If you only had one employer during the year, and that one employer withheld more than $4,485.60, you must ask the employer to address the issue for you and refund the overpayment. You can only file the excess with the IRS if more than two employers collectively withheld more than $4,485.60. If the overpayment was not employer error, skip Step 2 and proceed to Step 3.
- 2). File IRS form 843 with your taxes if only one employer withheld more than $4,485.60 and they refuse to adjust the overpayment. If this does not apply to you, or your employer already addressed the error, proceed to Step 3. Fill out your personal information and under "type of return," check "1040." Attach a statement written by yourself or your employer that lists any reimbursement your employer has already given you based on this overpayment. Sign the form and include it when you file your taxes.
- 3). Add up all the Social Security taxes that were withheld from your paycheck over the last year. These amounts are typically shown in box 4 on your W-2 forms. Include any Social Security taxes that you have not yet paid on income, such as tips. Subtract $4,485.60, from the total Social Security taxes you paid to determine your overpayment. This is the amount of overpayment you will file with the IRS.
- 4). Prepare your taxes using IRS Form 1040. On line 65, enter the Social Security overpayment amount you calculated in Step 3.
- 5). Add up all the amounts on lines 62 through 70 and write the total on line 71. The total amount listed on line 71 represents your total tax payment to the government.
- 6). Continue filling out form 1040 using the instructions provided by the IRS. Keep in mind that the IRS will not necessarily issue you a refund for the entire Social Security overpayment. Instead, the overpayment is combined with other tax payments you made during the year to determine your total refund.
- 7). Sign the form and mail it to the IRS by April 15. The address will vary based on where you live, but each IRS address is listed on the last page of the form 1040 instruction manual included in the Resources section below.
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