I Think My W2 Is Wrong. What Should I Do?

A Form W-2, or Wage and Tax Statement, summarizes an employee’s annual wages and taxes withheld by their employer. This document is essential for accurately preparing an income tax return, providing the Internal Revenue Service (IRS) with a record of earnings and contributions. Inaccuracies on a W-2 can complicate tax filing and lead to issues with the IRS. Understanding how to identify and resolve these errors ensures a smooth tax season.

Understanding Potential W-2 Errors

Errors on a W-2 can manifest in several ways. One common discrepancy involves personal information, such as an incorrect name, Social Security Number (SSN), or mailing address. An incorrect SSN is significant because it links your income and withheld taxes to your tax record, and any mismatch can cause processing delays or problems with the IRS and Social Security Administration.

Another frequent error area relates to wage and salary information, including incorrect gross wages, tips, or other compensation reported in Box 1. An employer might report an amount higher or lower than what you actually earned, directly impacting your taxable income. Errors in federal, state, or local income tax withheld, such as in Box 2, can also lead to an incorrect calculation of your tax liability or refund.

Deductions and benefits also present opportunities for W-2 inaccuracies. Pre-tax deductions, such as 401(k) contributions or health insurance premiums, reduce your taxable income and are reported in various boxes, like Box 12. If these amounts are misstated, your taxable wages will be incorrect. Taxable benefits, such as group-term life insurance over a certain amount, also need accurate reporting as part of your wages.

Confirming W-2 Accuracy

After receiving your W-2, verify its accuracy against your personal financial records. Your final pay stub or earning statement for the tax year is a primary document for this comparison. This statement provides year-to-date totals for gross wages, federal income tax withheld, Social Security and Medicare taxes, and any pre-tax deductions. Comparing these figures to the amounts reported on your W-2 can quickly highlight discrepancies.

Beyond pay stubs, other documents offer additional verification. If your employment terms include specific salary, bonus, or benefit agreements, review your offer letter or employment contract to confirm expected compensation. For pre-tax deductions related to benefits, such as health savings accounts or retirement plans, check statements from your 401(k) provider or health insurance company to confirm correct amounts deducted. These personal records provide concrete evidence if an error is present on your W-2.

Correcting W-2 Information

If you identify an error on your W-2, contact your employer. Reach out to their payroll or human resources department as soon as possible, providing clear details of the discrepancy. When contacting them, have your original W-2 and any supporting documentation, like pay stubs or benefit statements, readily available to substantiate your claim.

Your employer is responsible for issuing a corrected W-2 using Form W-2c, the Corrected Wage and Tax Statement. This form amends information from a previously issued W-2, indicating both the original incorrect amount and the corrected figure for fields like wages, tax withholdings, or Social Security numbers. The employer prepares this form and sends copies to you and the Social Security Administration (SSA) to update their records. While no strict IRS deadline exists for employers to issue Form W-2c, they are expected to correct errors promptly to avoid potential penalties. Corrections usually process within a few weeks, though during peak tax season, this timeline can extend to four to eight weeks or more.

Filing Your Tax Return Without a Corrected W-2

If you have contacted your employer about a W-2 error but have not received a corrected Form W-2c by the tax filing deadline, you still need to file your tax return on time to avoid penalties. The IRS provides Form 4852, Substitute for Form W-2, Wage and Tax Statement, for this purpose. This form allows you to report your wages and withheld taxes using the most accurate information available.

To complete Form 4852, use your best available information, such as year-to-date totals from your final pay stub, bank statements showing direct deposits, or other personal financial records. These documents help you estimate your gross wages, federal income tax withheld, Social Security and Medicare taxes, and any state or local taxes withheld. Attach Form 4852 to your tax return, explaining the steps taken to obtain a corrected W-2 from your employer and how you determined the estimated figures.

Should you later receive a corrected W-2c after filing your tax return using Form 4852, and the information differs from what you reported, you may need to file an amended tax return. This is done using Form 1040-X, Amended U.S. Individual Income Tax Return, to adjust any figures reported incorrectly on your original filing. Filing Form 4852 allows you to meet your tax obligations by the deadline, while the option to amend ensures your final tax record accurately reflects your income and withholdings.