My W2 Is Wrong: Here’s How to Fix It
Understand how to resolve W2 inaccuracies and ensure proper income reporting for your tax return.
A Form W-2, the Wage and Tax Statement, is an important document employers provide to their employees and the Internal Revenue Service (IRS) annually. This form details the total wages earned and the amounts of federal, state, and local taxes withheld from an employee’s paychecks during the tax year. The accuracy of a W-2 is essential because it serves as the foundation for filing individual income tax returns and helps the IRS track an individual’s tax obligations. It also helps the Social Security Administration calculate future benefits based on reported earnings.
Understanding W2 Errors
Errors on a W-2 can affect personal identification or financial reporting. Common mistakes in personal information, such as an incorrect name or Social Security Number (SSN), can lead to IRS processing delays. The employee’s name on the W-2 must match their Social Security card to avoid issues.
Financial data in specific boxes can also be inaccurate. For instance, Box 1, which shows taxable wages, tips, and other compensation, might be incorrect if certain benefits or contributions are miscalculated. Errors in tax withholdings, such as those in Box 2 (federal income tax withheld), Box 4 (Social Security tax withheld), or Box 6 (Medicare tax withheld), directly affect the taxpayer’s liability or refund amount. Similarly, employer information, including the Employer Identification Number (EIN), company name, or address, might be erroneous, which can cause complications for both the employee and the IRS.
Steps to Correct a W2
If you discover an error on your W-2, you should contact your employer. Clearly explain the discrepancy, such as an incorrect Social Security Number or a misreported wage amount. Providing documentation like pay stubs can help support your claim and expedite the correction. Your employer is responsible for issuing a corrected W-2, which is known as Form W-2c, Corrected Wage and Tax Statement.
The Form W-2c will show both the incorrect and new, accurate information. Employers should file Form W-2c promptly and provide a copy to the employee. Once you receive the Form W-2c, review it carefully to ensure all corrections have been made accurately before using it for tax filing.
Filing Your Taxes with an Uncorrected W2
If you are unable to obtain a corrected W-2 (Form W-2c) from your employer by the tax filing deadline, you can still file your tax return. One method involves using Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form allows you to estimate your wages and withheld taxes accurately, typically based on information from your final pay stub or earnings statement. Attaching Form 4852 to your tax return enables you to meet the filing deadline, although it may lead to a delay in processing any refund while the IRS verifies the information.
If you receive a corrected W-2 (Form W-2c) after you have already filed your original tax return, and the information differs, you may need to amend your return. File Form 1040-X, Amended U.S. Individual Income Tax Return. Form 1040-X allows you to correct income, deductions, credits, or other information previously reported. You will need to include the original return information, the new corrected amounts, and an explanation for the changes.