I received a W2 and 1099 from same employer for the same job. For one pay period she wrote manual checks(with proper taxes with held) and “forgot” to put payroll thru our service company. So my W2 is now wrong and she gave me a 1099 with exact amount of manual check. She refuses to correct W2 and is saying I need to file 1099 b/c she already filed her taxes. Isn’t this illegal? She never paid payroll taxes, pocketed the taxes she withheld for me and now I’m being taxed twice for that pay period if I file this 1099. And isn’t it her responsibility to issue a correct W2 and deal with the incorrect 1099? What should I do?
You can include in your tax return a substitute W-2, Form 4852, with the correct information. Here's how to create a Form 4852 in TurboTax. On the screen in TurboTax where you enter your W-2 information, enter the correct information, not the incorrect information that is on your W-2. After you click Continue on the W-2 entry screen, you will get a screen that says "Do any of these uncommon situations apply to this W-2?" (There might be some other questions about your W-2 information before you get to this screen.) One of the boxes says "Substitute form - I didn't get a W-2 from my employer and need to complete a substitute form." Put a check in that box (even though that's not exactly your situation) and click Continue. The next screen asks if you want to complete Form 4852. Click Yes. Proceed through the screens, entering the requested information to complete Form 4852.