What to Do If Your W-2 Form Is Incorrect

A W-2 form, or Wage and Tax Statement, summarizes an employee’s annual earnings and taxes withheld by an employer. Provided by January 31st each year, this document is necessary for filing federal and state income tax returns. It details income, Social Security, Medicare taxes, and other contributions. Errors on a W-2 form can significantly impact tax return accuracy, potentially leading to incorrect calculations, delayed refunds, or penalties. Correcting these discrepancies is important for accurate tax reporting.

Identifying W-2 Errors

Identifying inaccuracies on a W-2 form involves reviewing its contents against personal financial records. Common errors include incorrect personal details, such as a misspelled name or an inaccurate Social Security Number (SSN). The SSN on the W-2 must precisely match your Social Security card. Discrepancies may also appear in reported wage amounts, specifically in Box 1, Box 3, or Box 5.

Another area prone to error is the amount of federal or state income tax withheld, found in Box 2 and Box 17. Incorrect employer information, such as the Employer Identification Number (EIN), employer name, or address, can also be present. To verify your W-2’s accuracy, compare it against your final pay stub for the tax year. Pay stubs provide a detailed breakdown of gross income, pre-tax deductions, and withheld taxes, which helps reconcile the figures reported on the W-2.

Steps to Request a Corrected W-2

Upon identifying an error on a W-2 form, the initial step is to contact the employer’s payroll or human resources department. This direct communication is the most efficient way to initiate the correction process. When contacting the employer, have the original W-2 form and supporting documentation, such as pay stubs, to clearly illustrate the error. Providing evidence like pay stubs, which show the correct figures, can expedite the employer’s review.

The employer has a legal responsibility to issue a corrected W-2, known as Form W-2c, Corrected Wage and Tax Statement. This form is designed to rectify mistakes on the original W-2. If the corrected W-2c is not received within a reasonable timeframe, such as by the end of February, follow up with the employer. This helps ensure that corrections are made before the tax filing deadline.

Filing Your Taxes Without a Corrected W-2

If an employer fails to provide a corrected W-2 (Form W-2c) before the tax filing deadline, taxpayers have alternative options. If a corrected W-2 is not received by the end of February, contact the IRS directly. Provide your name, address, Social Security Number, dates of employment, and the employer’s name, address, and phone number. The IRS will send a letter to the employer requesting the corrected form within ten days.

If the employer still does not provide the corrected W-2, the IRS may instruct you to use Form 4852, Substitute for Form W-2. Form 4852 allows taxpayers to estimate their wages and withholding amounts based on available information, such as their final pay stub. This form is used to report income and withheld taxes when the official W-2 is missing or incorrect. Retain all supporting documentation, including pay stubs and records of communication with the employer, to substantiate the figures reported on Form 4852. Filing with Form 4852 can lead to delays in processing a refund while the IRS verifies the provided information.

Amending Your Tax Return After Correction

If you filed your original tax return and then receive a corrected W-2 (Form W-2c), you will likely need to amend your tax return. An amendment is necessary if the corrected W-2 changes your tax liability or refund from what was reported on the original return. This ensures that your tax records with the IRS accurately reflect the correct wage and tax withholding information.

To amend a previously filed return, use Form 1040-X, Amended U.S. Individual Income Tax Return. This form allows for corrections to income, deductions, and credits reported inaccurately on the initial Form 1040. When completing Form 1040-X, enter the original figures, the corrected figures from the W-2c, and explain the changes. The amended return should include a copy of the W-2c and any other supporting documents.

Filing an amended return may result in an additional tax refund or an amount owed. Form 1040-X can be e-filed for certain tax years, or paper filed to the correct IRS address. Processing an amended return can take 8 to 16 weeks.