In certain cases, taxpayers overpay for Social Security and Medicare over the course of a tax year. This typically occurs when an employee works multiple jobs but can happen if a worker has too much withheld at a single place of employment.

If, usually due to having multiple employers, a taxpayer pays more than the annual maximum Social Security (FICA) tax, the amount in excess of the maximum for the year is refundable on the taxpayer’s 1040.  Medicare (Hospital Insurance (HI)) tax has no maximum and therefore never results in an overpayment.  Also see Chapter 8.03 on self-employment tax.