What Happens If I Already Filed My Taxes and Got Another W2?

Receiving another Form W-2 after you have already submitted your income tax return is not uncommon, as employers sometimes issue corrected forms or an original form may be delayed in the mail. The arrival of a new W-2 means that the income and tax withholding reported on your initial return were incomplete. It is a straightforward issue to resolve, and understanding the process can ensure your final tax record for the year is accurate.

Determining the Impact of the New W-2

The first step is to determine how the information on the newly received W-2 affects your already filed tax return. You will need a copy of your original Form 1040. Locate the line for “Wages, salaries, tips, etc.” and the line for “Federal income tax withheld from Form(s) W-2.” Compare the total amounts you reported with the figures shown on the new W-2, as this represents additional income and withholding not included in your original calculations.

This comparison is necessary because your tax liability is based on your total income. The additional wages will increase your adjusted gross income (AGI), which could move you into a higher tax bracket or affect your eligibility for certain deductions and credits. You are still required to report the income to the Internal Revenue Service (IRS), even if the federal income tax withheld on the new W-2 seems sufficient to cover the tax on the additional wages. Failing to report all of your income can lead to notices and potential penalties.

The new W-2 introduces new financial data that was absent from your original filing, making that return inaccurate. By identifying the exact amounts of unreported wages and tax withholding, you establish the specific figures that need to be corrected. This prepares you for updating your tax return to reflect a complete picture of your annual earnings.

Preparing Your Amended Tax Return

To correct your return, you will need the original Form 1040 you filed, all W-2s used for that filing, and the new W-2. The form for this process is Form 1040-X, Amended U.S. Individual Income Tax Return, which can be downloaded from the IRS website.

Form 1040-X uses a three-column format. Column A, “Original amount,” is for the figures from your initial return. Column C, “Correct amount,” is for the updated totals after including the new W-2 information. Column B, “Net change,” shows the mathematical difference between the other two columns.

For example, add the wages from the new W-2 to the original total and enter this sum in Column C on the wages line. The amount from the new W-2 is entered in Column B. Follow the same procedure for federal income tax withheld. These changes will likely alter your AGI, requiring you to recalculate your total tax liability. You must provide a brief explanation for the changes in Part III of Form 1040-X, such as, “Received an additional Form W-2 after filing.”

Submitting the Amended Return

Once you have completed Form 1040-X, you can submit it to the IRS electronically or by mail. Many major tax software providers now support the e-filing of amended returns. If you used software to file your original return, you can typically log back into your account, indicate that you need to amend, and the software will guide you through transmitting the Form 1040-X electronically.

If you file by mail, you will need to print the completed Form 1040-X. The mailing address depends on the state where you live. You can find the correct mailing address in the official instructions for Form 1040-X, available on the IRS website.

Regardless of the submission method, you must include a copy of the new W-2 that prompted the amendment. You should also attach any other tax forms or schedules that are affected by the changes on the amended return. For instance, if the change in your AGI affects a deduction you claimed on a specific schedule, a corrected version of that schedule should be included.

Managing Financial Outcomes

After submitting your amended return, the changes will result in one of two financial outcomes: you will either owe additional tax or be due a larger refund. If the Form 1040-X indicates that you owe more tax, it is best to pay the amount due as soon as possible. Prompt payment helps minimize any potential interest and penalties. The IRS offers several payment options, including IRS Direct Pay, payment by debit or credit card, or mailing a check or money order.

Conversely, if the amendment results in a larger refund, the IRS will issue the additional amount to you. The federal income tax withheld on the late W-2 might be more than the actual tax liability on that income. The processing time for amended returns is significantly longer than for original returns, often taking 16 weeks or more. You can monitor the progress of your amended return using the “Where’s My Amended Return?” tool on the IRS website.