My W-2 incorrectly lists $2,250 of taxable income for tuition reimbursement which should have been classified as a non-taxable fringe benefit. How do I fix this?

[xmasbaby0 · Accepted solution]

If you believe the employer prepared your W-2 incorrectly you have to talk to the employer.  The W-2 you have is the one the employer reported to the IRS so you cannot change it yourself.  if something is wrong, the employer can provide a corrected W-2 called a W-2C.  Do not e-file until you sort this out with the employer.

[nickfuzer]

I contacted my employer and they stated that I filled out the IRS tuition reimbursement questionnaire incorrectly which caused the taxes to be assessed.  The HR representative that I spoke with said that they cannot change the answers to my IRS questionnaire and mentioned that I need to work with a tax professional in order to sort this out.

What would be the next step in this case?

[MaryK4]

Unfortunately, your best option is to see if you qualify for tone of the Education Credits or Tuition deduction.  Since the money is now taxed, you can use it for these.  

@nickfuzer

[yoonh]

Hi! @nickfuzer were you able to fix this problem?

I'm in the same situation, my HR told me they can't fix the answer so I had to pay all the taxex for this year (almost 10K!) Trying to figure out how to get tax refund for this. 

I'd appreciate your answer and update!

[fanfare]

Assuming you are correct in your assessment of the situation, you need a revised tax return Form 1040 that shows the correct results, including attached forms and schedules.

you also need a copy of the tax return you filed with its attached forms and schedules.

Use Form 1040-X to submit new or changed information on an already submitted tax return.

[yoonh]

@fanfare Hi, thanks for the reply.

This happened this year, 2021 so haven't file the tax return yet. Trying to figure out what to do when I file the tax return next year! 

[Critter-3]

How can the nonexistent W-2 for 2021 possibly be incorrect ?   Have the employer report the non taxable tuition correctly to begin with ... talk to them now. 

[fanfare]

This is what happens when you piggy-back on an old thread (same situation) with no details of your own,

but your situation is really not the same.

Confusion.

[yoonh]

@fanfare I just couldn't find information about this. i know every case is different. thanks for the reply tho

@Critter-3 I just wanted to be prepared if they don't fix this year and get the incorrect w-2 form. thanks

[Critter-3]

BE PROACTIVE ... the employer should explain what is taxable and non taxable and how it will or will not be reported on the W-2 form next January.  It is better it is done correctly to begin with instead of scrambling later to fix it.