My W-2 Is Wrong, What Should I Do?

A Form W-2, the “Wage and Tax Statement,” summarizes your annual wages, tips, and other compensation received from an employer, along with federal, state, and local taxes withheld from your pay. Employers must furnish a W-2 to each employee by January 31st of the following year and send copies to the Social Security Administration (SSA) and the Internal Revenue Service (IRS). The information on your W-2 is used when you file your income tax return, making its accuracy important for proper tax reporting and avoiding issues with tax authorities.

Common W-2 Errors

Errors on a W-2 form can affect your tax calculations and future benefits. Incorrect personal information, such as a misspelled name, outdated address, or inaccurate Social Security number (SSN), is a common issue. An incorrect SSN is a significant error because it is how the IRS and SSA track your earnings and contributions, and it must match the name on your Social Security card.

Errors can also occur in reported wage amounts. Box 1, “Wages, tips, other compensation,” reports your taxable income for federal income tax purposes, which might differ from your gross pay due to pre-tax deductions like retirement plan contributions or health savings account (HSA) contributions.

Box 3, “Social Security wages,” and Box 5, “Medicare wages and tips,” represent the portions of your earnings subject to Social Security and Medicare taxes, respectively, up to specific annual limits for Social Security. Discrepancies here can impact your Social Security benefits in the future.

Beyond wages, incorrect withholding amounts are another common problem. Box 2 shows the federal income tax withheld, while other boxes detail state and local income taxes withheld. If these amounts are wrong, it can lead to an unexpected tax bill or a smaller refund than anticipated. Errors can also involve the employer’s information, such as an incorrect Employer Identification Number (EIN) or address.

Box 12 of the W-2 reports various types of compensation or reductions from taxable income, identified by specific letter codes. Errors in these codes or amounts, such as incorrect reporting of retirement plan contributions (e.g., Code D for 401(k)) or health savings account contributions (Code W), can lead to incorrect taxable income calculations.

Verifying Your W-2 Information

Once you receive your W-2, review it carefully for accuracy before filing your tax return. Gather all your pay stubs for the tax year, especially your final pay stub, and any statements related to retirement accounts or health savings accounts. These records serve as your primary comparison points against the W-2 data.

Compare each box on your W-2 with the year-to-date (YTD) totals on your final pay stub. For instance, the YTD “gross pay” on your pay stub should align with the total wages reported in Box 1, “Wages, tips, other compensation,” though Box 1 may be lower due to pre-tax deductions like 401(k) or health insurance premiums. Verify the amounts in Box 2, “Federal income tax withheld,” and any state or local tax withheld against your pay stub’s YTD withholding figures.

Check your personal details, including your full name and Social Security number, ensuring they match your Social Security card. Confirm your address and your employer’s name and Employer Identification Number (EIN) are correct. If you contributed to a retirement plan, a Health Savings Account (HSA), or received dependent care benefits, compare the amounts and corresponding codes in Box 12 against your contribution statements. Any differences should prompt further investigation.

Correcting a W-2 Error

If you identify an error after reviewing your W-2, contact your employer. Reach out to their payroll or human resources department as soon as possible. Explain the specific error(s) and provide supporting documentation, such as copies of your pay stubs, which show the correct year-to-date figures.

Your employer is responsible for correcting errors on your W-2 and should issue Form W-2c, Corrected Wage and Tax Statement. This form reflects both the previously reported incorrect amounts and the new, correct information. It is an amendment to the original W-2.

Once you provide the necessary information, follow up with your employer if you do not receive Form W-2c within a reasonable timeframe, typically a few weeks. Wait for the corrected Form W-2c before filing your tax return, as incorrect information can lead to processing delays or require filing an amended return later. If the tax filing deadline is approaching and you still haven’t received the corrected form, other options are available.

Actions When an Employer is Unresponsive

If your employer is unresponsive to requests for a corrected W-2, or if you have not received your W-2 by late February, contact the Internal Revenue Service (IRS). Call the IRS helpline, providing your name, address, Social Security number, employment dates, and your employer’s name, address, and phone number. The IRS may then contact your employer, typically sending a letter requesting the missing or corrected form within about ten days.

If you are still unable to obtain a correct W-2 from your employer after contacting the IRS, or if the tax filing deadline is approaching, you may need to use Form 4852, Substitute for Form W-2. This form allows you to estimate your wages and withheld taxes based on your pay stubs and other records. Attach Form 4852 to your income tax return (Form 1040 or 1040-SR).

When completing Form 4852, provide your best estimates of income and taxes withheld, along with an explanation of your efforts to obtain the correct W-2 from your employer. Retain all documentation supporting your estimated figures. If you later receive a corrected Form W-2c after filing with Form 4852, and the information differs, you may need to file an amended tax return using Form 1040-X to reconcile discrepancies.