What happens if you overpay social security tax

Forgot Password. Your earned income, like wages and bonuses, is subject to the federal Social Security tax, which equals However, only a certain amount of income, known as the contribution and benefit base, is subject to Social Security tax each year. The Social Security tax limits are calculated separately for each taxpayer.

If you work for multiple companies, each company is required to withhold Social Security tax from your paycheck until your earnings from that job exceed the annual contribution and benefit base.

As a result, if your total earned income across multiple jobs exceeds the contribution and benefit base, you can pay more than the annual limit. When you file your taxes, first calculate the amount of your overpayment of Social Security tax by adding up the combined Social Security tax withheld from all your wages.

You are no longer disabled and continue to receive benefits. You do not report a change to us on time or at all as required. We incorrectly figure your benefits because of incorrect or incomplete information. We will send you a notice explaining the overpayment and asking for a full refund within 30 days. If you are currently getting payments and you do not make a full refund, the notice will:. If you were a minor child receiving Foster Care benefits, and the State was your representative payee at the time you were overpaid, let us know.

If you believe you were not overpaid or the amount of the overpayment is incorrect, you may request a reconsideration. If you ask for an appeal within 10 days from the date you receive the notice, any payment we are currently making will continue until we make a determination.

If you had more than one employer and too much Social Security tax or Tier 1 RRTA tax withheld, you may be able to claim the excess as a credit against your income tax on your income tax return. Page Last Reviewed or Updated: Nov Share Facebook Twitter Linkedin Print.