Publication 505 - Tax Withholding And Estimated Tax (Page 35 of 49) in pdf

Table 3.1

3. Add lines 1 and 2. If $5,263.80 or

Example 3.4. In 2002, Tom Martin earned

less, stop here. You cannot claim

$52,000 working for Shoe Company and

the credit. . . . . . . . . . . . . . . . . .

Maximum

$40,200 working for Leather Design. Shoe Com-

wages

Maximum

4. Social security and tier 1 RRTA tax

pany withheld $3,224 for social security tax.

subject

tax to be

limit . . . . . . . . . . . . . . . . . . . . . 5,263.80

Leather Design withheld $2,492.40 for social

5. Excess. Subtract line 4 from line 3.

Type of Tax

to tax Tax rate

withheld

security tax. Because he worked for two employ-

Social security

$84,900

6.2%

$5,263.80

ers and earned more than $84,900, he had too

Tier 1 railroad

Where to claim credit for excess tier 1 RRTA

much social security tax withheld. Tom figures

retirement

withholding. If you file Form 1040A, include

(RRTA)

$84,900

6.2%

$5,263.80

his credit of $452.60 as follows:

the excess in the total on line 43. Write “Excess

Tier 2 RRTA

$63,000

4.9%

$3,087.00

SST” and show the amount of the credit in the

Filled-in Worksheet 3.1 for Tom Martin

(Example 3.4)

space to the left of the line. If you file Form 1040,

enter the excess on line 65.

Note. All wages are subject to Medicare tax

1. Add all social security tax withheld

You cannot claim excess tier 1 RRTA with-

withholding.

(but not more than $5,263.80 for

holding on Form 1040EZ.

Employer’s error. If any one employer with-

each employer). This tax should be

Worksheet 3.3

held too much social security or RRTA tax, you

shown in box 4 of your Forms

W – 2. Enter the total here. . . . . . . $5,716.40

cannot claim the excess as a credit against your

1. Add all tier 2 RRTA tax withheld (but

2. Enter any uncollected social

income tax or file a claim for refund of the ex-

not more than $3,087.00 for each

security tax on tips or group-term

cess. Your employer must adjust this for you.

employer). Box 14 of your Forms

life insurance included in the total

W – 2 should show tier 2 RRTA tax.

on Form 1040, line 61 . . . . . . . . .

Worksheet for

Enter the total here . . . . . . . . . . .

3. Add lines 1 and 2. If $5,263.80 or

2 Enter any uncollected tier 2 RRTA

Nonrailroad Employees

less, stop here. You cannot claim

tax on tips or group-term life

the credit. . . . . . . . . . . . . . . . .

5,716.40

insurance included in the total on

4. Social security tax limit . . . . . . . .

5,263.80

Unless you worked for a railroad during 2002,

Form 1040, line 61 . . . . . . . . . . .

5. Excess. Subtract line 4 from line 3.

$452.60

figure the excess on the following worksheet.

3 Add lines 1 and 2. If $3,087.00 or

less, stop here. You cannot claim

Worksheet 3.1

Worksheets for

the credit. . . . . . . . . . . . . . . . . .

4. Tier 2 RRTA tax limit . . . . . . . . . . 3,087.00

1. Add all social security tax withheld

Railroad Employees

5. Excess. Subtract line 4 from line 3.

(but not more than $5,263.80 for

each employer). This tax should be

If you worked for a railroad during 2002, figure

shown in box 4 of your Forms W – 2.

How to claim refund of excess tier 2 RRTA .

your excess withholding on the following work-

Enter the total here . . . . . . . . . . .

To claim a refund of tier 2 tax, use Form 843,

sheets.

2. Enter any uncollected social security

Claim for Refund and Request for Abatement.

tax on tips or group-term life

Worksheet 3.2

Be sure to attach a copy of all of your W – 2

insurance included in the total on

forms.

Form 1040, line 61 . . . . . . . . . . .

1. Add all social security and tier 1

3. Add lines 1 and 2. If $5,263.80 or

RRTA tax withheld (but not more

less, stop here. You cannot claim

than $5,263.80 for each employer).

the credit. . . . . . . . . . . . . . . . . .

Social security tax should be shown

4. Social security limit . . . . . . . . . . . 5,263.80

in box 4 and tier 1 RRTA should be

5. Excess. Subtract line 4 from line 3.

shown in box 14 of your Forms

W – 2. Enter the total here . . . . . . .

Where to claim credit for excess social se-

2. Enter any uncollected social security

curity withholding. If you file Form 1040A,

and tier 1 RRTA tax on tips or

include the excess in the total on line 43. Write

group-term life insurance included in

the total on Form 1040, line 61 . . . .

“Excess SST” and show the amount of the credit

in the space to the left of the line. If you file Form

1040, enter the excess on line 65.

You cannot claim excess SST withholding on

Form 1040EZ.

Chapter 3 Credit for Withholding and Estimated Tax for 2002

Page 35

Publication 505 - Tax Withholding And Estimated Tax Page 35

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