Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
I work for a company that was acquired and on March 31 I received a severance package. When I received my severance pay, Social Security was withheld in excess of the maximum owed. After March 31, I was employed by three different companies and Social Security was withheld from each paycheck. By the end of the year I had well paid over the limit. How do I get this back?
The maximum wages subject to Social Security tax withholding for 1998 was $68,400, for a maximum withholding of $4,240.80 in Social Security taxes. For amounts withheld in excess of the $4,240.80 as a result of having more than one employer throughout the year, a taxpayer may take credit for excess taxes paid on Line 62 of Form 1040. However, if any one employer withheld more than $4,240.80, you must ask the employer to refund the excess to you. You may not claim it on your return.
Christopher Getty, CPA, PricewaterhouseCoopers LLP
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after the greeting. You can also submit questions by e-mail through The Sun's Web site: www.sunspot.net. Click on Business.
Selected questions will be answered in the Business section. No questions will be answered personally.
Pub Date: 2/15/99