J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

26.8 FICA Withholdings

FICA withholdings are employee contributions for Social Security and Medicare coverage. Your employer is liable for the tax if he or she fails to make proper withholdings. The amount withheld is figured on your wages and is not affected by your marital status, number of exemptions, or the fact that you may be collecting Social Security benefits. On Form W-2, Social Security withholdings are shown in Box 4 and Medicare withholdings in Box 6.

Subject to FICA tax are your regular salary, commissions, bonuses, vacation pay, cash tips, group-term insurance coverage over $50,000, the first six months of sick pay, and contributions to cash or deferred (401(k)) pay plans or salary-reduction contributions to a simplified employee pension (SEP), SIMPLE IRA, or tax-sheltered annuity. Not subject to tax are the value of tax-free meals and lodgings (3.12), and reimbursements for substantiated travel or entertainment expenses or for moving expenses.

Excess Social Security and Railroad Retirement withholding.

If you have worked for more than one employer during 2012, attach all Copies B of Form W-2 to your return. Check to see that the total withheld in 2012 by your employers does not exceed your liability for Social Security taxes. The maximum 2012 liability for Social Security is $4,624.20, 4.2% of the first $110,100 of salary income. If too much was withheld, claim the excess on the applicable line in the “Payments” section of your 2012 Form 1040. On Form 1040A, the ...