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Social Security update: What to do with overpaid taxes?

Before you file your next tax return, review some of the most complicated areas of the tax code.

The fact that you are exempt from paying Social Security tax on income beyond the “taxable maximum”—which is $147,000 for 2022 and increases to $160,200 in 2023—is one clause that receives little attention.

Overpaid Taxes

This can become complicated if you receive many W-2 pay statements in a single year. When you work numerous jobs, each employer only knows how much you were paid by them, not how much you were paid overall.

On the back end, there is no method for the payroll systems to communicate with one another. For instance, you would be $13,000 over the limit and would have likely paid the whole tax on that if you worked one job in 2022 and made $100,000, then changed to another and made $60,000 more.

Depending on your overall income and the amount you are over the limit, you may be eligible to receive a portion of your excess Social Security benefits returned. 

You would receive a lot more money if you had two $500,000 jobs in a year as opposed to if you were just $13,000 over the limit and paid 20% tax.

The tax software or a tax expert should figure out the excess for you if you enter more than one W-2 pay statement for a specific individual when doing your taxes. Schedule 3 contains the specifics, which are then stated on line 31 of your 1040 tax return.

You’ll need to look further and make inquiries if this doesn’t appear. You must be sure to compute this manually if you are filing your taxes independently and on paper.

Read more: Social Security check: Learn how to boost your income by $1,983!

Social Security Data

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The exemption from Social Security tax on income above the taxable level, $147,000 in 2022 and $160,200 in 2023, is rarely discussed.

Meanwhile, More than 10% of Americans, or 42 million people, had their data compromised during 2016, according to research from the end of the previous year.

A Russian hacker organization hacked the Lehigh Valley Health Network in Pennsylvania earlier this month and demanded money in exchange for their release of cancer patients’ narcissistic photos.

After a hacker shut down its systems, Tallahassee Memorial HealthCare, which serves over 400,000 patients throughout Florida, was left using pen and paper for five days.

The event made the emergency department congested, and some patients had to be turned away. The websites of 14 prestigious US hospitals, including Duke University and Stanford, were taken down in January by the notorious Russian cybergang Killnet.

The systems of CommonSpirit Health were compromised last year, exposing more than 20 million Americans.

Read more: Powerful genome editing tool CRISPR poses potential in reversing vision loss

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