Reporting Social Security Tax Withheld—Preparing Your 1040
Reporting Tax Payments on Form 1040
Form 1040 isn't just about tallying up all the sources of income you enjoyed during the year, although it can certainly feel like it. Tax payments are reported on lines 64 through 73, and these payments don't all involve writing a check to the IRS. They're applied to your total tax, which appears on line 63, and they either result in an overpayment—which means you get a refund—or an underpayment, so you owe a balance.
Tax payments that appear on these lines include withholding, estimated tax payments, the Earned Income Tax Credit, excess Social Security withholding, the Additional Child Tax Credit, and any payment you might have made if you asked for an extension of time to file. Here's how it all breaks down.
Line 64: Withholding on W-2 and 1099
Gather your W-2 and 1099 statements for the year and look at box 2 on the W-2s and at box 4 on your 1099s. Both boxes should be titled, "Federal Income Tax Withheld."
The figures in these boxes report how much income tax was withheld from your income over the course of the year. Add up all these amounts and report the total on line 64 of Form 1040.
Remember to attach one copy of your W-2 statement to the front of the 1040 when you file. If you have any 1099 statements that show withholding, you should attach one copy of each of them as well. In most cases, income tax is not withheld from 1099 income. Some situations when it might be withheld include:
- 1099-G, box 4: Withholding on unemployment income
- 1099-R, box 4: Withholding on retirement income
- SSA-1099, box 6: Withholding on Social Security benefits
- 1099-INT, box 4: Withholding on interest income
- 1099-DIV, box 4: Withholding on dividend income
- 1099-MISC, box 4: Withholding on miscellaneous and non-employee compensation
Line 65: Estimated Tax Payments
If you made any estimated quarterly tax payments using Form 1949-ES throughout the year, add them up along with periodic payments you might have made using EFTPS or IRS Direct Pay, as well as any refunds from previous years that you elected to apply toward your current year's tax obligation. Add everything together and report the total on line 65.
If you qualify for the Earned Income Tax Credit, the amount of credit you're entitled to goes on line 66a. You'll know how much you qualify for when you complete Schedule EIC. If you're also making a nontaxable combat pay election, enter this amount on line 66b.
Line 67: Additional Child Tax Credit
Claiming the Additional Child Tax Credit is a two-step process. First you must fill out the Child Tax Credit Worksheet found on pages 41 and 42 of the Instructions for Form 1040. If your allowable child tax credit is less than what you owe in taxes, your tax credit was reduced, but you might be able to claim the balance as an Additional Child Tax Credit using Form 8812. Complete Form 8812 to find out if you qualify and, if so, how much of a credit you're entitled to. You'll find this on line 13 of the form.
Then enter the number of line 67 of your 1040.
Line 68: American Opportunity Tax Credit
This is a tax credit for educational costs you paid on behalf of you, your spouse, or any of your dependents. You can calculate it by completing Form 8863. The amount of credit you're entitled to, if any, appears on line 8 of Form 8863, and you would enter this amount on line 68 of your 1040 tax return.
Line 69: Net Premium Tax Credit
Complete Form 8962 to determine whether you qualify for this tax credit and, if so, how much of a credit you're entitled to.
Line 70: Amount Paid With Extension to File
If you filed for an automatic extension using Form 4868 and if you made a payment with the form, put the payment amount on Form 1040 line 70.
If you did not file for an extension or did not make a payment with your extension, you can skip this line.
Line 71: Excess Social Security Tax
Excess Social Security tax is calculated based on each year's maximum Social Security tax limits. For example, in 2017 the maximum Social Security tax was $7,886, which represents 6.2 percent of taxable Social Security wages on the maximum Social Security limit of $127,200. This maximum limit can increase annually, so make sure you get the right number for the year for which you're filing a tax return.
You can find out how much you and your employer paid into Social Security by checking box 4 on all your W-2 statements. Add up all the amounts that appear in this box. Compare your total to the maximum Social Security tax for the year. If the total exceeds the maximum, then you can claim the excess as a refund. The excess is your total Social Security withholding minus the maximum.
If your total is less than the maximum, then you can skip Line 71.
If you made any payments using Forms 2439, 4136, or 8885, check the appropriate box or boxes on lines 72 and 73 and report the payment amount.
- Form 2439 reports undistributed long-term capital gains to shareholders of regulated investment companies or real estate investment trusts. Your payment amount is in box 2.
- Form 4136 reports federal taxes paid on gasoline and other fuels if you used the fuel for allowable non-taxable purposes. Your payment amount is on page 2, line 10.
- Form 8885 reports a tax credit for certain displaced workers who paid for continued health insurance after being laid-off. You should receive Form 8885 if you were an eligible trade adjustment assistance (TAA) recipient, alternate TAA recipient, or Pension Benefit Guaranty Corporation pension recipient and you were covered by an eligible health insurance plan. Your tax credit amount is reported on Form 8885, line 7.
Line 74: Total Payments
Add up all the amounts that appear on Form 1040 lines 64 through 73. Report the total on Line 74. This amount represents your total tax payments throughout the year.