Are you curious about how to correct errors on your W-2 form?
Whether you are an employee or an employer, understanding how to correct a Form W-2 is crucial for avoiding tax penalties and ensuring your tax returns are filled correctly.
This article will guide you and provide helpful tips to make the process as smooth as possible.
Grab a coffee, and let’s do some taxes!
Form W-2
Form W-2 is a tax form you use to report wages, tips, and other compensations made to you during the year. It declares the taxes withheld from your paycheck, such as:
- Federal income tax
- Social security tax
- Medicare tax
Your employer is required to provide form W-2 to you, which you will fill and return to your employer, and they submit the form to Social Security Administration (SSA) and Internal Revenue Service (IRS)
Form W-2C
If any errors have been made on form W-2, form W-2C is used to rectify the errors. Errors can be simple omissions or incorrect information filled in on the W-2.
The w-2C form is then submitted to the SSA and the IRS, and a copy is returned to you.
Correcting a W-2 form with errors will save you from potential penalties down the financial year.
Procedure
When correcting any errors made, you will follow this outline:
Step 1
Obtain a blank W-2C form from the IRS website or your tax professional.
Step 2
Fill out the header information on top of the form. It includes your employer’s name, address, and employers identification number (EIN), along with your name, address, and social security number (SSN)
Step 3
The form has two parts.
In part 1 of the W-2C form, enter the information misreported on the original W-2 form. It might include incorrect wages, tips, social security wages, medicare wages, federal income tax withheld, and medicare tax withheld.
In Part 2, enter the correct information and explain why the correction is being made.
Step 4
Make copies of the completed W-2C form for your records, and submit the original form to the Social Security Administration (SSA).
You may also need to provide a copy of the corrected form to your state tax agency, depending on the requirements of the state you are in.
Hints for Filling the Forms
You can always avoid further errors by following these hints:
- Always gather the correct information before filling out any of the two forms. For example, always have the right figures and correct names before completing the forms.
- Inform your employers you have made corrections so that they are aware and can take the necessary action.
- Provide the W-2C form to all required parties.
- Keep records. Keep copies of the two documents for your records. They will help you track the corrections and easily respond to any questions from the IRS or the SSA.
- Take time to review all the forms before submitting them
Visit https://blog.boomtax.com for any queries regarding taxation and income.
