We have three W2s for 2023 (downloaded directly into TurboTax), all for the same person but two of them (with the same EIN) are from a settlement fund from the same company as the third W2, which has it's own EIN. Collectively, the SSN tax withheld is over the SSN limit for the year, but the IRS claims that the submitted W2s do not support this. In reading the TurboTax Schedule 3, Line 11 smart worksheet, it says that for the two W2s with the same EIN/person/company I must reduce the amount calculated by the excess withholding from those W2s. Can anyone explain why this TurboTax worksheet says to reduce it and by how much, when it already knows that we paid the max SSN?
It concerns me that this question suggesting that I check this did not come up in the final review before the filing.
