Line 31 — Amount from Schedule 3, Line 15
Excess Social Security Tax Withheld
If you worked for two or more employers during the year and your combined wages exceeded the Social Security wage base ($168,600 for 2024), you may have had more than the maximum Social Security tax withheld. Each employer withholds 6.2% independently and cannot coordinate with other employers. The excess withholding is claimed as a credit on Schedule 3, Line 11, and flows to Line 31. For example, if you earned $100,000 from each of two employers, each would withhold $6,200 in Social Security tax, totaling $12,400 — but the maximum for the year is $10,453, resulting in a credit of $1,947.
Other Refundable Credits
Schedule 3, Part II also includes the credit for federal tax on fuels (Form 4136) for taxpayers who used fuel for off-highway business purposes, farming, or certain exempt purposes. The credit for tax paid on undistributed long-term capital gains from a regulated investment company or REIT (reported on Form 2439) also appears here. Additionally, credits from Form 8885 for health coverage tax credit, credits from extensions of time to file from combat zone service, and other specialized credits flow through this line.
Why This Line Matters
Line 31 captures payments and credits that do not fit neatly into other categories but can still be significant. The excess Social Security tax credit alone can be worth nearly $2,000 for high-earning individuals with multiple employers. Farmers and off-highway equipment operators may have substantial fuel tax credits. These credits are fully refundable, meaning they increase your refund or reduce your balance due regardless of your tax liability. Properly identifying and claiming these credits requires reviewing all W-2s for Social Security withholding totals and evaluating whether any specialized credits apply to your situation.
Related Forms and Schedules
Line 31 carries the amount from Schedule 3, Line 15, which includes the net premium tax credit, amounts paid with extension requests, excess Social Security tax withheld, and other refundable credits and payments. For taxpayers with foreign income, the foreign tax credit computed on Form 1116 also flows through Schedule 3 as a nonrefundable credit that reduces the overall tax liability.
Questions About Your 1040?
Our NYC CPA team prepares individual and business returns with careful attention to every line.