I recently received a corrected W-2 from my prior job in the military which was corrected from $65,000 down to $58,000. Does that mean I will have to pay that money back?

if you really got paid $58K and the original w-2 is just wrong you would file an amended return for that year.

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however, if you got paid $68K when you should have only received $58K you will probably get a bill for repayment.  Since is seems the repayment would occur in a year after you got paid you are subject to the tax rules for repayments.

 

since the repayment would be in excess of $3000 here are the rules for the year of repayment:

you can take as a deduction on schedule A line 16 denote as IRC 1341 repayment OR
recompute the taxes in the year you received the payment by excluding the $7k overpayment from wages in box 1. the decrease in taxes is taken as a credit on schedule 3 line 12d denote as IRC 1341

 

The line numbers may vary depending on the years involved. 

 

 

You should Ask DFAS why you got a corrected W-2 and whether they will ask for repayment. No one here has any information about your military pay or your corrected W-2.