What If I Have Two W2s From the Same Employer With Different Wages?

Receiving multiple W-2 forms from the same employer, especially with differing wage amounts, can be unsettling. This situation often raises questions about accurately reporting income for tax purposes. While seemingly complex, receiving more than one W-2 from a single employer is a common occurrence with identifiable reasons. This article clarifies why this happens and outlines the necessary steps for accurate tax filing.

Common Reasons for Receiving Multiple W-2s

The Employer Identification Number (EIN) identifies each distinct legal entity. When multiple W-2 forms arrive, examining the EIN in Box b of each document is the first step. If the W-2s display different EINs, they originate from separate legal entities, even if the “employer” feels like the same overarching company.

A common reason for multiple W-2s is a corrected W-2, Form W-2c. Employers issue a W-2c when an error is identified on the original W-2, such as incorrect wage amounts or tax withholdings. The W-2c supersedes the initial form; the original W-2 should not be used for tax reporting once the corrected version is received.

Changes in a company’s structure, such as mergers or acquisitions, frequently lead to multiple W-2s. If an employer underwent a change in ownership or legal organization during the tax year, they might have operated under different EINs for distinct periods. An employee could have earned wages under one EIN for part of the year and under a new EIN for the remainder.

Internal restructuring, a switch in payroll providers, or an employer’s decision to reorganize accounting systems can also result in multiple W-2s. These administrative changes sometimes necessitate reporting income under different EINs across the tax year. In very large organizations, an employee might work for different legal entities, each with its own EIN, while remaining within the same corporate structure.

Steps to Take When Reviewing Your W-2s

Upon receiving multiple W-2s from the same employer, carefully compare each document. Pay close attention to Box 1 (total wages, tips, and other compensation) and Box 2 (federal income tax withheld). The Employer Identification Number (EIN) in Box b is important; differing EINs indicate distinct legal entities.

If a form is labeled W-2c, it is a corrected version of a previously issued W-2. The W-2c will specifically state “Corrected” and provide the revised information. In such cases, the original W-2 that the W-2c corrects becomes invalid for tax filing purposes and should be set aside.

Should discrepancies exist not explained by a W-2c, or if you are uncertain which W-2 is accurate, contact your employer’s payroll or human resources department. Be prepared to provide specific details, such as differing wage amounts and EINs on each form. Request clarification on why multiple forms were issued and confirm the total wages earned and taxes withheld for the entire tax year.

Employers are generally responsive to such inquiries, as accurate wage reporting is their responsibility. They can often provide a clear explanation for the multiple forms or issue a corrected W-2 if an error is identified. Obtaining this clarity before preparing your tax return ensures you report the correct income and avoid potential issues with the IRS.

Reporting Your Income on Your Tax Return

Once you have clarified your W-2 situation, accurately report your income on your tax return. If a W-2c was issued and confirmed as the correct document by your employer, only the information from that W-2c should be used for tax filing. The original, incorrect W-2 should not be reported, as doing so would lead to an overstatement or understatement of income.

If you have multiple valid W-2s, perhaps due to a merger, acquisition, or working for separate entities under a common umbrella, all of these valid W-2s must be reported. Tax preparation software typically provides clear fields to enter information from each W-2 separately. The software will then automatically combine the wage and withholding information from all entered forms to calculate your total income and tax liability.

For individuals who file using paper forms, each valid W-2’s information is entered according to the instructions for Form 1040 or Form 1040-SR. You will sum the Box 1 wages from all valid W-2s to arrive at your total wage income, and similarly sum the Box 2 federal income tax withheld amounts. This ensures that all earned income and taxes paid are accounted for.

Failing to report all valid W-2s or using an incorrect W-2 can lead to issues with the Internal Revenue Service (IRS), potentially causing processing delays or triggering an inquiry. If you discover after filing that you used incorrect W-2 information, you will need to file an amended tax return using Form 1040-X. This form allows you to correct previously submitted information and reconcile your tax obligations.