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IRS.gov Website
Publication 17
taxmap/pub17/p17-188.htm#en_us_publink1000174888

Refundable Credits(p247)

rule
The credits discussed in this part of the chapter are treated as payments of tax. If the total of these credits, withheld federal income tax, and estimated tax payments is more than your total tax, the excess can be refunded to you.
taxmap/pub17/p17-188.htm#en_us_publink1000174965

Credit for Tax on Undistributed Capital Gain(p247)

rule
You must include in your income any amounts that regulated investment companies (commonly called mutual funds) or real estate investment trusts (REITs) allocated to you as capital gain distributions, even if you did not actually receive them. If the mutual fund or REIT paid a tax on the capital gain, you are allowed a credit for the tax since it is considered paid by you. The mutual fund or REIT will send you Form 2439 showing your share of the undistributed capital gains and the tax paid, if any.
taxmap/pub17/p17-188.htm#en_us_publink1000280459

How to take the credit.(p247)

rule
To take the credit, attach Copy B of Form 2439 to your Form 1040. Include the amount from box 2 of your Form 2439 in the total for Form 1040, line 73, and check box a.
taxmap/pub17/p17-188.htm#en_us_publink1000261333

More information.(p247)

rule
See Capital Gain Distributions in chapter 8 for more information on undistributed capital gains.
taxmap/pub17/p17-188.htm#en_us_publink1000174990

Credit for Excess Social Security Tax or Railroad Retirement Tax Withheld(p247)

rule
Most employers must withhold social security tax from your wages. If you work for a railroad employer, that employer must withhold tier 1 railroad retirement (RRTA) tax and tier 2 RRTA tax.
If you worked for two or more employers in 2014, you may have had too much social security tax withheld from your pay. If one or more of those employers was a railroad employer, too much tier 1 RRTA tax may also have been withheld at the 6.2% rate. You can claim the excess social security or tier 1 RRTA tax as a credit against your income tax when you file your return. For the tier 1 RRTA tax, only use the portion of the tier 1 RRTA tax that was taxed at the 6.2% rate when figuring if excess tier 1 RRTA tax was withheld; do not include any portion of the tier 1 RRTA tax that was withheld at the Medicare tax rate (1.45%) or the Additional Medicare Tax rate (.9%). The following table shows the maximum amount of wages subject to tax and the maximum amount of tax that should have been withheld for 2014.
Type of taxMaximum
wages
subject to tax
Maximum tax
that should
have been
withheld
Social security or RRTA tier 1$117,000$7,254
RRTA tier 2$ 87,000$3,828
EIC
All wages are subject to Medicare tax withholding.
Deposit
Use Form 843, Claim for Refund and Request for Abatement, to claim a refund of excess tier 2 RRTA tax. Be sure to attach a copy of all of your W-2 forms. Use Worksheet 3-3 in Publication 505, Tax Withholding and Estimated Tax, to help you figure the excess amount.
taxmap/pub17/p17-188.htm#en_us_publink1000174994

Employer's error.(p247)

rule
If any one employer withheld too much social security or tier 1 RRTA tax, you cannot take the excess as a credit against your income tax. The employer should adjust the tax for you. If the employer does not adjust the overcollection, you can file a claim for refund using Form 843.
taxmap/pub17/p17-188.htm#en_us_publink1000174995

Joint return.(p247)

rule
If you are filing a joint return, you cannot add the social security or tier 1 RRTA tax withheld from your spouse's wages to the amount withheld from your wages. Figure the withholding separately for you and your spouse to determine if either of you has excess withholding.
taxmap/pub17/p17-188.htm#en_us_publink1000174996

How to figure the credit if you did not work for a railroad.(p247)

rule
If you did not work for a railroad during 2014, figure the credit as follows:
1. Add all social security tax withheld (but not more than $7,254 for each employer). Enter the total here
2. Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 62, identified by "UT"
3. Add lines 1 and 2. If $7,254 or less, stop here. You cannot take
the credit
4. Social security tax limit 7,254
5. Credit. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 71 (or Form 1040A, line 46) $
taxmap/pub17/p17-188.htm#en_us_publink1000174998

Example.(p248)

You are married and file a joint return with your spouse who had no gross income in 2014. During 2014, you worked for the Brown Technology Company and earned $65,000 in wages. Social security tax of $4,030 was withheld. You also worked for another employer in 2014 and earned $55,000 in wages. $3,410 of social security tax was withheld from these wages. Because you worked for more than one employer and your total wages were more than $117,000, you can take a credit of $186 for the excess social security tax withheld.
1. Add all social security tax withheld (but not more than $7,254 for each employer). Enter the total here$7,440
2. Enter any uncollected social security tax on tips or group-term life insurance included in the total on Form 1040, line 62, identified by "UT"   -0- 
3. Add lines 1 and 2. If $7,254 or less, stop here. You cannot take the credit  7,440
4. Social security tax limit  7,254
5. Credit. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 71 (or Form 1040A, line 46)  $186
taxmap/pub17/p17-188.htm#en_us_publink1000175000

How to figure the credit if you worked for a railroad.(p248)

rule
If you were a railroad employee at any time during 2014, figure the credit as follows:
1. Add all social security and tier 1 RRTA tax withheld at the 6.2% rate (but not more than $7,254 for each employer). Enter the total here
2. Enter any uncollected social security and tier 1 RRTA tax on tips or group-term life insurance included in the total on Form 1040, line 62, identified by "UT"
3. Add lines 1 and 2. If $7,254 or less, stop here. You cannot take
the credit
4. Social security and tier 1 RRTA
tax limit
7,254
5. Credit. Subtract line 4 from line 3. Enter the result here and on Form 1040, line 71 (or Form 1040A, line 46)$
taxmap/pub17/p17-188.htm#en_us_publink1000175002

How to take the credit.(p248)

rule
Enter the credit on Form 1040, line 71, or include it in the total for Form 1040A, line 46.
taxmap/pub17/p17-188.htm#en_us_publink1000260898

More information.(p248)

rule
For more information on the credit, see Publication 505.