While there is no cap on how much of a taxpayer's wage income is subject to income tax, there is a maximum amount of wages subject to FICA. Since employers are required to withhold FICA taxes, the most common explanation for excess FICA taxes being withheld is due to a taxpayer having worked for multiple employers. This is especially true for higher wage earners.
The wage limit for FICA is adjusted annually. The more recent year limits are as follows:
| Tax year | FICA Wage Cap | FICA Max Tax |
| 2024 | $168,600 | $10,453.20 |
| 2023 | $160,200 | $9,932.40 |
| 2022 | $147,000 | $9,114.00 |
| 2021 | $142,800 | $8,853.60 |
| 2020 | $137,700 | $8,537.40 |
| 2019 | $132,900 | $8,239.80 |
| 2018 | $128,400 | $7,96.80 |
| 2017 | $127,200 | $7,886.40 |
When completing the tax return, excess FICA withholdings are credited to the taxpayer on Schedule 3.
Note that if a single employer is withholding too much FICA, the employee should talk to the employer for correction and reimbursement. If the employer doesn't make the correction, the taxpayer can seek relief directly from the IRS by filing Form 843.
Note: This is a guide on how over-withheld FICA taxes are treated in TaxSlayer ProWeb. It is not intended as tax advice.
Additional Information:
IRS: Social Security Tax / Medicare Tax and Self-Employment
IRS: Instructions for Form 843
IRS: Topic No. 608 Excess Social Security and RRTA Tax Withheld