My employer overpaid Federal Income Taxes on my W-2. He wants me to repay him without amending my W-2 or filing a 941X. Is this legal?

[Tetsuo]

I already filed taxes and received a refund.  He claims that I need to give him my refund.  I disagree.  I believe that he needs to file a 941X and give me an amended W-2.  I refile and pay back the IRS and he receives the overpayment from the IRS.  Am I correct?

[IsabellaG · Accepted solution]

Yes, you are correct, if that's what actually happened. Do you have your paystubs from this company? Federal Income Tax withholding comes from your pay. It doesn't come from any employer contributions. If he reported too much withholding, he'd have to amend his 941s to show that. And yes, you would be paying the IRS back your refund if the withholding was wrong on your W-2. Don't pay the employer.

[Tetsuo]

:(  He did not give me any paystubs.  All that I have are my timesheets and copies of deposits.