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How Do I Get My Money Back if I Paid Too Much Social Security Tax?


Content provided for general information. Talk to your advisor to learn about recent updates or other rules that may apply to your situation.

If you’re a high earner, the Social Security income limit means you don’t have to pay Social Security taxes once you’ve hit the wage base for the year. If you have a single employer, they simply stop withholding Social Security taxes once you hit the limit. But what happens if you pay too much Social Security tax because you have multiple jobs, change jobs, or do freelance work on the side?

Social Security Income Limit

The Social Security wage base for tax year 2022 is $147,000. Once you earn more, you no longer owe Social Security tax.

This limit is adjusted for inflation each year. It was $142,800 in 2021 and will likely be higher in 2023.

What happens if you change jobs?

Let’s say you made $70,000 in one job for the first half of the year and $80,000 in a new job in the second half of the year. That total income of $150,000 leaves you with $3,000 of income above the 2022 Social Security wage base that should not be subject to Social Security taxes. The problem is because you earned the income through two employers, their payroll departments don’t know what you made at your other job.

You have two options if a job change puts you above the Social Security income limit.

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