What Happens If My W-2 Is Wrong? What You Need to Do

A W-2 Form, or Wage and Tax Statement, records annual wages and taxes withheld. Its accuracy is paramount, as the information reported on a W-2 directly impacts the preparation of an individual’s income tax return. Any discrepancies on this form can lead to significant issues during tax filing, potentially resulting in delays, incorrect tax calculations, or even correspondence from tax authorities.

Identifying Common W-2 Errors

Errors on a W-2 can manifest in various ways, ranging from simple typographical mistakes to more substantive issues concerning reported income or withheld taxes. One frequent issue involves incorrect personal information, such as a misspelled name or an inaccurate Social Security Number (SSN), typically found in Box a of the W-2. An incorrect SSN can cause significant problems with the Social Security Administration crediting your earnings.

Another common error relates to wages, tips, and other compensation reported in Box 1, or federal income tax withheld, shown in Box 2. These amounts might be overstated or understated, which directly affects your taxable income and the amount of tax credit you receive.

Similarly, issues can arise with Social Security wages and tax (Boxes 3 and 4) or Medicare wages and tax (Boxes 5 and 6), impacting contributions to these federal programs. State and local tax information, located in Boxes 15 through 20, can also contain errors. This might include incorrect state or local wages, inaccurate withholding amounts, or even an incorrect employer state ID number. An incorrect Employer Identification Number (EIN), found in Box b, can also be problematic, as this number uniquely identifies your employer to the IRS.

Steps to Correct a W-2

Upon identifying a W-2 error, contact your employer’s payroll or human resources department. You should clearly explain the discrepancy you have found and provide any supporting documentation, such as pay stubs, that substantiate your claim. Your employer is responsible for issuing a corrected W-2, known as Form W-2c, Corrected Wage and Tax Statement.

Once your employer processes the correction, they will send you a Form W-2c. This corrected form will show the original incorrect figures, the corrected figures, and the difference between the two, providing a clear audit trail. Retain both the original W-2 and the W-2c for your records, as tax authorities may request both documents during their review. Ensure that the corrected form accurately reflects the necessary changes before proceeding with your tax filing.

If your employer is unresponsive or unwilling to issue a corrected W-2, or if they fail to provide one in a timely manner (typically by late February or early March following the tax year), you have recourse. You can contact the IRS for assistance, as they can initiate an inquiry with your employer. If the filing deadline approaches and you still haven’t received a corrected W-2, you may be able to file Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form allows you to estimate your wages and withholding based on your own records, such as pay stubs, to file your tax return. If the error pertains to Social Security or Medicare wages, contacting the Social Security Administration may also be necessary to ensure your earnings are correctly recorded for future benefits.

Tax Filing Implications of a W-2 Error

Filing your tax return with an incorrect W-2 can create significant issues with the IRS, potentially leading to processing delays or notices of discrepancy. It is best to wait for a corrected W-2c before submitting your return, especially if the error significantly impacts your reported income or tax withheld. Submitting a return with incorrect information means the data you provide will not match the information your employer sends to the IRS, which can trigger an audit or a request for more information.

The tax filing deadline of April 15 still applies. If you anticipate a delay in receiving your corrected form and cannot meet the deadline, you can file Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This form grants an automatic six-month extension to file your return, pushing the deadline to October 15, though it does not extend the time to pay any taxes owed. Estimate and pay any tax liability by the original April deadline to avoid penalties and interest.

If you have already filed your tax return using an incorrect W-2, you will need to amend your return once you receive the corrected W-2c. This is done using Form 1040-X, Amended U.S. Individual Income Tax Return. On Form 1040-X, you will report the original figures from your initially filed return, the corrected figures from your W-2c, and the resulting changes to your tax liability. You will need to attach a copy of the corrected W-2c to Form 1040-X and mail it to the IRS. Amending a return ensures that your tax record with the IRS accurately reflects your income and withholding, preventing future complications.