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<<I have changed jobs recently. In my previous job, I had already hit the limit of FICA taxes for this year. However, my current employer says that they will deduct the FICA taxes for this year as if I just started earning this year! They say that I can get my excess FICA taxes back when I file my income taxes for this year. >>

Absolutely correct.

<<I see some problems with this. First, I don't remember any place in the 1040 where I indicate what my FICA taxes were.>>

Under normal circumstances you are correct. But, when you have more than one employer during the year, and you have paid more FICA than the law allows, line 62 of Form 1040 (1999 edition) will allow you a "credit" in the form of additional withholding for the excess FICA taxes that you paid.

<< Secondly, why would the IRS be refunding my excess FICA taxes? Is it not the SSA that gets the FICA money?>>

True, but the IRS is the collection agent for SSA (and a number of federal and state agencies). So IRS is just handling the dollars for the SSA.

<<I am completely lost on this one. If any of you have any suggestions/experiences regarding this, please post a reply.>>

Your employer gave you the correct information. Their hands are ties. They are LEGALLY not allowed to let you "skip out" on FICA withholding. So your employer's hands are tied on this issue.

The good news is that YOU can get your FICA money back on your 2000 1040. But it's your employer who is really taking the screwing, since there is no way for your employer to apply for a refund for the overpaid FICA taxes.

Hope this explains things to your satisfaction.

TMF Taxes

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