What Happens If Your W-2 Is Incorrect?

Form W-2, the Wage and Tax Statement, summarizes an employee’s annual earnings and the federal, state, and local taxes withheld by their employer. Employers must issue Form W-2 to employees by January 31st each year, providing information for filing income tax returns. The Internal Revenue Service (IRS) and Social Security Administration (SSA) also receive copies, using this data to track tax liabilities and Social Security benefits. Accurate W-2s are important, as discrepancies can lead to issues with tax filings, potential penalties, or delays in processing refunds.

Recognizing W-2 Errors

Identifying errors on a W-2 involves reviewing each section against your personal records. Discrepancies can impact your tax return accuracy and potentially lead to IRS scrutiny.

Errors in personal information are common and can include a misspelled name, an incorrect Social Security Number (SSN), or an outdated address. Your name on the W-2 should precisely match what is on your Social Security card, and an incorrect SSN can lead to significant processing delays or rejections by the IRS. Similarly, the employer’s name, address, or Employer Identification Number (EIN) can also contain errors.

Wage and withholding errors often appear in the boxes detailing your earnings and taxes. Box 1 (Wages, Tips, Other Compensation) might show an incorrect gross wage. Boxes 3 (Social Security Wages) and 5 (Medicare Wages and Tips) could inaccurately reflect wages subject to FICA taxes. Boxes 2, 4, and 6, which report federal, Social Security, and Medicare taxes withheld, might also contain incorrect figures. These amounts directly determine your tax liability or potential refund.

Other income and deduction errors typically appear in Box 12, which uses specific codes for various compensation or benefits, such as non-qualified plans, dependent care benefits, or Health Savings Account (HSA) contributions. Compare your W-2 to your final pay stub, which details year-to-date earnings and deductions. While a W-2 and pay stub may not perfectly match due to pre-tax deductions, significant differences warrant investigation. Checking bank statements can also help verify total income.

Steps to Correct Your W-2

Upon discovering a W-2 error, first contact your employer’s payroll or human resources department to report the discrepancy. This initial communication is important for initiating the correction process.

When contacting your employer, be prepared to provide specific details about the error. Clearly state which box or piece of information on your W-2 is incorrect and why you believe it is erroneous. Providing supporting documentation, such as your final pay stubs, personal records, or bank statements, can expedite the process and help your employer verify the inaccurate information.

Your employer is responsible for correcting the mistake by issuing a Form W-2c, a Corrected Wage and Tax Statement. They must also file a corresponding Form W-3c, Transmittal of Corrected Wage and Tax Statements, with the Social Security Administration (SSA). The W-2c will show the corrected figures, and you should receive copies for your records and tax filings.

Employers should aim to issue corrected forms within a reasonable timeframe, often within 30 days. If you do not receive the corrected W-2c within a few weeks, follow up with your employer.

Filing Your Tax Return with a Corrected W-2

Receiving a corrected W-2 (Form W-2c) directly impacts how you file your tax return. The timing of its receipt determines your next steps.

If you receive your W-2c before the tax filing deadline and before submitting your original tax return, use the corrected information from the W-2c to prepare and file your Form 1040. The W-2c replaces the incorrect W-2, ensuring your initial filing is accurate.

If you have already filed your original tax return using the incorrect W-2, you will need to amend your return. This involves filing IRS Form 1040-X, Amended U.S. Individual Income Tax Return. Form 1040-X is used to make corrections to a previously filed Form 1040, 1040-SR, or 1040-NR.

To complete Form 1040-X, you will need to provide the original figures reported on your initial return, the corrected figures from your W-2c, and explain the net change for each line item. It is important to attach the Form W-2c to your amended return, as it serves as documentation for the changes. You can now often e-file Form 1040-X, though paper filing remains an option.

Amending your tax return can lead to various outcomes, such as an additional refund, an increased tax liability, or no change in tax owed. If you owe more tax, you should pay it as soon as possible to avoid penalties and interest. Processing times for amended returns are typically longer than for original returns, often taking up to 16 to 20 weeks. You can generally check the status of your amended return online through the IRS “Where’s My Amended Return?” tool after about three weeks from submission.

What if Your Employer Doesn’t Issue a Corrected W-2?

If an employer is unresponsive or unwilling to provide a corrected W-2 (Form W-2c), employees have options. After repeated attempts to obtain the form, generally by the end of February, you can seek IRS assistance.

When you contact the IRS for assistance, you will need to provide your personal information, including your name, address, Social Security Number, and dates of employment. You should also have your employer’s name, address, and phone number readily available. The IRS will then reach out to your employer to request the missing or corrected form.

If the employer still does not provide the W-2 or W-2c, or if you need to file your return by the deadline, you can use IRS Form 4852, Substitute for Form W-2, Wage and Tax Statement. This form allows you to estimate your wages and withheld taxes based on the information you have, such as your last pay stubs, earnings statements, or bank records. You must accurately complete Form 4852, detailing your efforts to obtain the correct W-2 and explaining how you estimated your income and withholdings.

Form 4852 is filed with your tax return (Form 1040) in place of the missing or incorrect W-2. While you can e-file your tax return with Form 4852, you may need your employer’s Employer Identification Number (EIN) to do so; otherwise, a paper filing might be necessary. If you later receive the correct W-2 or W-2c after filing with Form 4852 and the information differs, you may need to file an amended return using Form 1040-X.