What If My W-2 Is Wrong? Here’s What to Do

A Form W-2, Wage and Tax Statement, is a fundamental document for every taxpayer. It reports an employee’s annual wages and the amount of federal, state, and local taxes withheld by their employer throughout the year. It serves as a primary source of information for preparing an accurate income tax return. While employers generally provide accurate W-2s, errors can occasionally occur, making it important to understand how to address discrepancies.

Identifying Common W-2 Errors

Various types of errors can appear on a W-2 form. Personal information, such as an incorrect name or Social Security Number (SSN), can lead to problems with the Internal Revenue Service (IRS) matching your tax return. An inaccurate SSN could cause delays in processing your return or affect future Social Security benefits.

Discrepancies in wage amounts are also common, including errors in Box 1 for federal wages, Box 3 for Social Security wages, or Box 5 for Medicare wages. Incorrect wage reporting directly impacts your taxable income. Similarly, inaccurate federal or state income tax withheld, reported in Box 2 for federal taxes or Boxes 17/19 for state/local taxes, can affect your refund or taxes you owe. Other issues might involve incorrect retirement plan indicators or errors in coded boxes like Box 12, which can misrepresent certain types of income or deductions.

Steps to Request a Correction

Once a W-2 error is identified, clearly contact your employer’s payroll or human resources department. Explain the error you found on the form. Providing supporting documentation, such as pay stubs or other records, can help the employer verify the discrepancy.

Upon confirming the error, your employer is responsible for issuing a corrected W-2. This corrected form is officially known as Form W-2c, Corrected Wage and Tax Statement. It details the changes made to the original W-2. Maintain a detailed record of all communications with your employer regarding the correction request, including dates, names, and summaries of discussions.

Tax Filing When a W-2 is Incorrect

If a corrected W-2 (Form W-2c) is not received by the tax filing deadline, or if the employer is unresponsive, taxpayers may use Form 4852, “Substitute for Form W-2,” to file their original income tax return. This form requires providing the employer’s name and address, along with the taxpayer’s estimate of wages and taxes withheld, based on records like pay stubs.

Form 4852 is attached to the tax return and serves as a replacement for the W-2. Accurately estimate income and withholdings using reliable documentation. If a corrected W-2 is received after the original return has been filed using Form 4852, and the information differs, the taxpayer will likely need to file an amended return.

An amended return is filed using Form 1040-X, “Amended U.S. Individual Income Tax Return.” This form corrects discrepancies in income, deductions, or credits reported on a previously filed Form 1040. Filing Form 1040-X ensures the IRS has accurate financial information.

Dealing with Unresponsive Employers

If attempts to obtain an original or corrected W-2 from an employer are unsuccessful, taxpayers can seek assistance from the IRS. Employers are required to furnish W-2s to employees by January 31. If the form is not received by the end of February, or if an employer fails to provide a corrected W-2, the IRS can intervene.

The IRS can contact the employer to request the missing or corrected form. To initiate this, taxpayers should provide their personal information, employment dates, and the employer’s details. Taxpayers can also report suspected tax law violations, such as an employer’s failure to issue W-2s, using Form 3949-A, “Information Referral.” Contacting the IRS provides a resolution when an employer remains unresponsive.