Filing Amended Tax Return for FICA

[kitty14]

Hi, I am on OPT visa and thus, not required to pay Medicare and Social Security taxes. However, my employer deducted FICA taxes from my salary for 2022 (full year) and 2021 (Aug - Dec). I filed my taxes and received refunds for both years respectively.

I also filed a FICA tax Refund for 2022 and received the refund. My employer then provided me with the corrected W-2 for 2022 and 2021. My question is, after having received the FICA refund, do I still need to file the amended tax return for 2022 with the W-2c? I mean, the IRS has the updated information, which is why they issued me the refund, but I want to be sure that my taxes are filed correctly.

Also, I have filed the FICA tax refund for 2021 but have not received it yet. I would like to know if I should file an amended tax return for 2021 as well. Thanks a lot!

[DoninGA]

There is no need to file an amended return if the corrected W-2 you received from your employer only changes the amount of Social Security and Medicare taxes withheld.

[kitty14]

Hi, thanks for the reply. So, for both my amended W-2S (2022 AND 2021), cells 3,4, and 5 are updated to show 0.0. Cell 3 is Social Security Wages, cell 4 is Social security tax withheld, and cell 5 is Medicare Wages and Tips. 

However, for my State section of the W-2c, cell 16 (State wages, tips, etc.) and cell 17 (State Income tax) also show 0.00. Is that normal? I am just confused because I have already received the state income tax refund before I filed for FICA and received that refund.

Similarly, for my Locality section of the W-2c, cell 18 (Local wages, tips, etc.) and cell 19 (Local Income tax) show 0.00. Do I still not need to file the amended tax return? Thanks a lot!

[DoninGA]

If the State and Local income and taxes withheld were correct on the original W-2, there would not be a need to amend the state return because of the 0 entries for State and Local on the corrected W-2.  Your employer should have left boxes 15 thru 20 blank (empty).

[kitty14]

So for 2021, the cells through 15 and 20 are blank and only changes are to the social and medicare taxes. 

For 2022, the correct information shows 0.00 for state and local taxes and also federal tax (in cell 2). Does this mean that my w-2c is incorrect? Because my employer did have difficulty in getting my corrected W-2. Shoud I inform my employer that I have already received state and federal tax refunds and thus they should correct my W-2c to leave cells 15 through 20 blank? Thanks!

[DoninGA]

I would just leave things as they are.  There is no need to have the employer change your W-2 again due to the amounts entered on the corrected W-2 for State and Local.

[kitty14]

So should I still not file the amended tax return for 2022 then and just leave the W-2c as it is?

I just want to avoid any future immigration-related problems that may arise because of this discrepancy in W-2, just in case they ask for my 2022 W2. thanks!

[DoninGA]

As previously stated - 

There is no need to file an amended return if the corrected W-2 you received from your employer only changes the amount of Social Security and Medicare taxes withheld.

The state/local portion of the corrected W-2 will have no affect on your federal or state tax returns that have been previously filed.

[kitty14]

Sounds good - thanks for the clarification! My employer is going to apply for my green card, and that's why I was worried about getting the most accurate version of W-2. But if it will not have any affect on the existing state and local taxes and I have already received my FICA refund for 2022, I will just leave the whole thing as it is! Thanks a lot for your time!