What to Do When Your W-2 Form Is Wrong
Is your W-2 form incorrect? Learn how to identify errors, get them corrected, and file your taxes accurately, even with employer issues.
A W-2 form, officially known as the Wage and Tax Statement, is a document employers provide annually, detailing an employee’s wages and federal, state, and local taxes withheld. This information is used to complete an individual’s income tax return, Form 1040. Accurate W-2 forms are necessary for taxpayers to correctly report income and withheld taxes to the IRS and state tax agencies. Errors can lead to tax return delays, incorrect tax liabilities, or penalties. Promptly addressing discrepancies on a W-2 is important for accurate tax compliance.
Identifying the Discrepancy
Errors on a W-2 form can impact wage reporting or tax withholding. Common issues include incorrect personal data like an employee’s name or Social Security Number (SSN), or employer details such as their Employer Identification Number (EIN) or address. Discrepancies also frequently arise in reported wage amounts, federal income tax withheld, Social Security wages and taxes, Medicare wages and taxes, or state and local tax withholdings.
To identify errors, compare your W-2 with your last pay stub for the tax year. Your final pay stub summarizes annual earnings, tax withholdings, and contributions, providing a reference for verification. Checking each W-2 box against corresponding pay stub figures helps pinpoint inaccuracies, allowing you to identify incorrect wage amounts, over- or under-withheld taxes, or misreported personal information before filing.
Steps to Correct the W-2
Upon identifying an error on your W-2, the first step involves contacting your employer to request a correction. Reach out to the payroll department or human resources, as they are responsible for issuing these tax documents. When reporting the error, clearly state the specific line item or box that is incorrect and provide the accurate information. You should also include supporting documentation, such as copies of your pay stubs, to substantiate your claim, and the incorrect W-2 itself.
Your employer is responsible for issuing a corrected W-2, which is known as Form W-2c, Corrected Wage and Tax Statement. This form is used to amend inaccuracies in wage and tax information previously reported to both the employee and the Social Security Administration (SSA). Employers should file Form W-2c as soon as an error is discovered and provide the corrected form to the employee promptly. There is no specific deadline for filing Form W-2c, but timely correction helps avoid potential penalties for the employer and ensures the employee has accurate information for tax filing.
Filing Your Taxes with a Corrected W-2
The timing of receiving your corrected W-2 (Form W-2c) dictates how you file your taxes. If you receive the Form W-2c before filing your original tax return, use the corrected information on the W-2c to complete your Form 1040. This ensures your initial filing reflects accurate wage and tax withholding data.
If you have already filed your tax return before receiving the corrected Form W-2c, and the information differs from what you reported, you must amend your return. File Form 1040-X, Amended U.S. Individual Income Tax Return. Refer to the W-2c when completing Form 1040-X to accurately update your income, deductions, and tax liabilities.
If the tax filing deadline is approaching and you haven’t received your corrected W-2, you have options. You can file your return using the best available information from your pay stubs and then amend it later with Form 1040-X once the W-2c arrives. Alternatively, consider filing an extension (Form 4868) to gain more time, though this does not extend the deadline for paying taxes owed.
Resolving Unresponsive Employer Issues
If your employer is unresponsive or fails to issue a corrected W-2, seek assistance from the Internal Revenue Service (IRS). First, attempt to contact your employer multiple times. If this doesn’t result in a corrected W-2 by the end of February, contact the IRS for help.
The IRS can initiate a Form W-2 complaint on your behalf. They will send a letter to your employer requesting the corrected Form W-2 within approximately ten days. The IRS will also provide you with Form 4852. This form allows you to estimate your wages and withheld taxes using information from your pay stubs if a correct W-2 cannot be obtained directly from your employer. Attach Form 4852 to your tax return.