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Credit for Excess Social Security Tax

Social security tax withholding
Most employers must withhold social security tax from your wages. If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax. If you worked for 2 or more employers in 2007, too much social security tax or tire 1 RRTA (social security equivalent) tax may have been withheld from your pay. You can claim the excess as a credit against your income tax on line 67 in the payments section of Form 1040.

Maximum amount of withholding
The table below shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld in 2007. This table is also found in the IRS Publication 505, Withholding and Estimated Tax, page 45.
Credit for Excess Social Security Tax
What if my employer makes a withholding mistake?
If any one employer incorrectly withheld more than the maximum amount of your social security or RRTA tax, you cannot claim the extra amount withheld as a credit. Your employer must adjust this for you.
If you are filing married filing jointly, you must figure the credit separately for both you and your spouse to determine if either of you had excess withholding. You cannot add the social security or RRTA tax withheld from your wages to your spouse's wages.



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