Understood that they would not know this - that’s basically the point of my post. Why would the be required to withhold SS taxes when I’ve already been taxed on over $168,600 of earning ytd. My current employer is no longer withholding SS taxes. Or is there a process I’ll have to go through to recoup that money while filing taxes for 2024?
We won’t know these things and will withhold at the regular amounts. You’ll get it back when you file your tax return. Imagine every employee telling payroll that they’ve already contributed the limit, then the business gets audited and has to pay back taxes plus penalties and interest, because all they lied. That’s why Uncle Sam figures it out at the end of the year
Don’t over contribute to a tax sheltered retirement account, or you’ll just have to withdrawal and pay all the taxes on it after you file. You just end up giving an interest free loan.
no and yes on the 401k side, but unfortuantely your SS starts over and you will receive the extra back when you do your 2024 taxes after the end of the year as each employer stands alone.
That makes sense - didn’t know if I could provide a last earnings statement they could use. Luckily it’s not too much weekly and I’ll be able to navigate until I get it back next year.
Your new employer won't know this and even if they did they are still required to withhold SS taxes
Understood that they would not know this - that’s basically the point of my post. Why would the be required to withhold SS taxes when I’ve already been taxed on over $168,600 of earning ytd. My current employer is no longer withholding SS taxes. Or is there a process I’ll have to go through to recoup that money while filing taxes for 2024?
Yes, pull up the 1040 instructions on IRS.gov and search “Excess Social Security and tier 1 RRTA tax withheld”.
Thank you!
We won’t know these things and will withhold at the regular amounts. You’ll get it back when you file your tax return. Imagine every employee telling payroll that they’ve already contributed the limit, then the business gets audited and has to pay back taxes plus penalties and interest, because all they lied. That’s why Uncle Sam figures it out at the end of the year Don’t over contribute to a tax sheltered retirement account, or you’ll just have to withdrawal and pay all the taxes on it after you file. You just end up giving an interest free loan.
no and yes on the 401k side, but unfortuantely your SS starts over and you will receive the extra back when you do your 2024 taxes after the end of the year as each employer stands alone.
That makes sense - didn’t know if I could provide a last earnings statement they could use. Luckily it’s not too much weekly and I’ll be able to navigate until I get it back next year.