Tax refunds are often celebrated, but that’s because people
don’t realize what they truly are. These refunds are not ‘free money.” Instead,
the are simply your own money that you have accidentally overpaid to the
federal government during a given tax year.
And, you can actually overpay in a variety of ways. So, if
you happen to overpay to the Federal Insurance Contributions Act, commonly
known as FICA, rest assured that it’s still possible to get a refund. In fact,
anytime you overpay in any way, you are entitled to get your money back.
What to Do When You’ve Overpaid
If you determine that you have overpaid on your FICA taxes,
then claiming a refund Is fairly straightforward and easy. You simply have to
fill out IRS Form 843, which is a claim for a refund and request for
reimbursement.
It helps if your employer can include a letter
substantiating your claim, but you can also include your own letter explaining
the situation, which your employer can then verify. Be sure to also include
your W-2 form from the tax year in which the overpayment occurred.
To make the process faster and easier and to ensure you have
attached all required documentation, it’s a good idea to seek the help of a
qualified tax professional. Often, with their help, you can expedite the
process greatly.
Avoid the Situation in the First Place
While getting your overpaid money back from the IRS is
possible, it’s definitely a hassle. If you’d like to avoid this hassle
altogether, then work with a tax professional from the beginning. That way, you
can ensure you always pay just the right amount in FICA taxes so that you don’t
end up having to fill out extra forms and make extra effort just to get your
own money back.
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