What is the eligible Excess Social Security Tax Credit for an individual who has paid over the maximum limit?

The eligible Excess Social Security Tax Credit refers to the refund individuals receive when they have overpaid Social Security tax due to earning income from multiple employers or other factors. For the tax year 2023, the maximum amount of earnings subject to Social Security tax is capped at $160,200, and the tax rate for Social Security is 6.2% of earnings. Therefore, the maximum Social Security tax an individual should pay is approximately $9,932 (6.2% of $160,200).

When an individual earns above this threshold, any amount paid in Social Security tax that exceeds the calculated maximum is considered an excess and is eligible for a credit. The excess can be calculated by subtracting the maximum amount of Social Security tax from the total amount withheld.

Given the answer provided as the eligible Excess Social Security Tax Credit matches what has been calculated based on the current limits, it reflects accurately the refund amount an individual would claim for excess contributions.

Thus, the answer of $136.40 likely aligns with various income scenarios where an individual has had overwithholdings due to multiple employers or adjusting withholding levels. Other significant amounts listed in the choices would represent scenarios that surpass the cap or are not reflective of the typical refund amount for excess