What this line means
A credit for Social Security tax withheld beyond the annual maximum when you worked for two or more employers. Each employer withholds 6.2% of your wages for Social Security up to the wage base ($176,100 for 2025), but employers do not coordinate with each other. If your combined wages from all employers exceed $176,100, your total Social Security withholding exceeds the maximum of $10,918.20 for 2025. The excess is refundable and claimed here.
Does this apply to you?
- You worked for two or more employers during the year and your combined wages exceeded $176,100
- Each employer withheld Social Security tax (6.2%) on your wages independently, without accounting for the other employer
- You switched jobs mid-year and both employers withheld Social Security tax from the start
Easy to overlook
This only applies with multiple employers, not one employer If you worked for a single employer, that employer stops withholding Social Security tax once your wages reach the annual cap. 1 There is no excess to claim. The credit applies only when two or more employers each withheld Social Security tax independently. Check Box 4 on each W-2 — if the amounts from all W-2s exceed $10,918.20 (for 2025), you have excess withholding. IRS Form 1040 Instructions — Line 11 of Schedule 3
The excess can be a significant refund A filer who earned $120,000 from one employer and $80,000 from another had $12,400 withheld in total Social Security tax ($7,440 + $4,960), but the maximum is $10,918.20. 2 The excess $1,481.80 is fully refundable. Filers who changed jobs often do not realize they overpaid and skip this line. General filing pattern — multiple-employer Social Security overwithholding
Watch out for this
Claiming excess withholding when you had only one employer. If your single employer mistakenly overwithheld Social Security tax, the remedy is to request a correction from that employer, not to claim the excess on Schedule 3. This line is for multi-employer situations only. Filing an incorrect claim here triggers an IRS inquiry.
Footnotes
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IRS Publication 15, Employer’s Tax Guide, Social Security Wage Base. https://www.irs.gov/pub/irs-pdf/p15.pdf ↩
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IRS Form 1040 Instructions, Schedule 3 Line 11. https://www.irs.gov/instructions/i1040s3 ↩