not exactly sure what you are saying about your w-2. however, if you plan to convert the money you took into wages and put it on a w-2 you have serious problems. that compensation is subject to social security and medicare taxes along with possible federal and state withholding for which you apparently have not filed payroll tax returns. in addition there are federal and state unemployment taxes.
that $19,000 goes on the w-2 and is a reduction of your taxable wages.
you can't deduct it personally on your 1040
seek professional guidance as soon as possible.
