How to Verify a W-2 and Correct Any Discrepancies

The Wage and Tax Statement, commonly known as Form W-2, details annual wages and taxes withheld by an employer. This document is essential for accurately preparing and filing income tax returns with federal and state authorities. Verifying the information on a W-2 ensures accurate tax filings, prevents refund delays, and confirms income for financial applications like loans. A thorough review can detect errors or fraud.

Understanding Your W-2

Employers issue Form W-2 by January 31st each year, summarizing the previous calendar year’s earnings and deductions. It records taxable income and federal, state, and local taxes withheld. Understanding the boxes is important for tax reporting.

Box 1, “Wages, tips, other compensation,” reports total taxable wages, tips, and other compensation paid by your employer. This is your gross income minus pre-tax deductions like 401(k) or HSA contributions. Box 2 shows total federal income tax withheld, the amount your employer sent to the IRS.

Boxes 3 and 5 report wages subject to Social Security and Medicare taxes. These may differ from Box 1 because Social Security wages have an annual wage base limit, unlike Medicare wages. Boxes 4 and 6 show Social Security and Medicare tax withheld. The employer’s Employer Identification Number (EIN) and address, and the employee’s Social Security Number (SSN) and name/address, are on the form for identification.

Methods for Verification

Verify your W-2 by comparing it with your financial records before filing. Cross-reference the W-2 with year-to-date (YTD) figures on your final pay stub. Each pay stub lists current period earnings and cumulative YTD totals for income and deductions.

First, sum YTD gross wages from your final pay stub and compare to Box 1 of your W-2. Next, review YTD federal income tax withheld from pay stubs and ensure it matches Box 2. Compare YTD Social Security wages and tax withheld from pay stubs to Boxes 3 and 4 on the W-2.

Verify YTD Medicare wages and tax withheld from pay stubs against Boxes 5 and 6 on your W-2. This comparison identifies discrepancies in reported income or withheld taxes. If pay stubs are unavailable, cross-reference direct deposit amounts in bank statements with expected gross pay, though this is less precise. Also check retirement account statements, like 401(k)s, to confirm pre-tax deductions that reduce Box 1 wages.

Addressing Discrepancies

Address W-2 discrepancies promptly. First, contact your employer’s payroll or human resources department to report the error. Provide your original W-2, supporting pay stubs, and a clear explanation of the discrepancy.

Your employer should investigate and, if an error is confirmed, issue a corrected W-2 (Form W-2c, Corrected Wage and Tax Statement). This corrected form reflects accurate figures and should be provided promptly. Retain all documentation related to the original W-2 and communications with your employer regarding the correction.

If your employer is unresponsive or unwilling to issue a corrected W-2, you may need to file IRS Form 4852 (Substitute for Form W-2, Wage and Tax Statement) with your tax return. This form allows reporting wages and withheld taxes based on your best available information, such as your final pay stub. Explain the steps taken to obtain a correct W-2 from your employer and why you cannot provide an official W-2 or W-2c.

When the IRS Can Help

The IRS may need to get involved to resolve W-2 issues. If you haven’t received your W-2 by the January 31st deadline, first contact your employer. If you still haven’t received the form by mid-February, or if your employer is unresponsive, contact the IRS.

The IRS can contact your employer to request the missing W-2. You can obtain wage and income information, including W-2 data, through your IRS online account by requesting a tax transcript. This transcript summarizes information from your filed tax returns and other documents, including W-2 data.

Report suspected W-2 fraud or identity theft to the IRS, for example, if you receive a W-2 from an employer you never worked for. The IRS has procedures for these situations, which may involve filing Form 14039 (Identity Theft Affidavit) and working with the Taxpayer Advocate Service. This helps protect your tax account and personal information from misuse.