W-2C Doesn’t Have Wages or Federal Income Tax Withheld Sections

[alng22209]

I recently left a company I had joined at the end of last year (2021) and had to repay my gross signing bonus less FICA OASDI and HI. I recently got a W-2C issued with updated portions for Social Security and Medicare wages and taxes withheld but the wages, tips, comp and federal income tax withheld sections are blank. Am I allowed to update my wages, tips, comp section based on what I actually earned? Below are some facts in my situation: 

• Joined the company in Sept 2021
• Received signing bonus (all taxed of course) in Oct 2021
• Departed firm in Jan 2022 (it was my decision to leave)
• Repaid gross bonus less FICA in Feb 2022 (over 3K loss to federal withholdings) 
• Received W-2C with section 1 Wages, tips, other compensation blank 

When I update my wages based on the amount I actually earned (that being my original amount earned less the amount I repaid) it looks like TurboTax was able to compute the amounts I lost to Federal Withholdings and States taxes. However, I'm not sure if I'm able to do this since the updated amount isn't on my W-2C. Wondering if I would need to still file at 1341 next year. Appreciate any advice on this! 😁

[Mike9241]

a w-2c only contains numbers for fields that have changed so most boxes will be blank.  you correct the fields that need changes and check the box this is a corrected w-2.

[alng22209]

Thanks for your explanation @Mike9241 ! In order to get back the amount I lost to federal and state withholdings it looks like I would need to update box 1 with the accurate amount that was paid to me. However if my company didn't make that update in box 1 in the W2C am I allowed to make that update myself in my filings or can I only make changes where updates have been made to my W2C and later have to do a 1341 next year? 

[ErnieS0 · Accepted solution]

Use the numbers from your original W-2, except for the corrected boxes on Form W-2C. 

Tax Champ @Mike9241 says "correct the fields that need changes and check the box this is a corrected w-2."

Do not change the number in Box 1. That is what you made in 2021. You paid your bonus back in 2022. That adjustment is made on next year's tax return. If the amount you paid back in Box 1 is more than $3,000 you can either claim a tax credit or deduction for the amount next year.

 See Repayments.

[alng22209]

@ErnieS0 got it, that somewhat makes sense. However, if I repaid my bonus in 2022 then shouldn't Boxes 3 and 5 (Social Security Wages and Medicare Wages and Tips) remain the same as 2021 too? Why are those fields reduced by the amount I paid back but not my Wages, tips, and other comp (Box1) in the W2C that was issued to me? Definitely appreciate your help in getting me understand what's going on 🙂

[DawnC]

Because they did pay you the bonus in 2021 (the pay back wasn't until 2022), so it will remain on your 2021 W-2.    Boxes 3 and 5 are there to calculate your FICA taxes (social security and medicare) for 2021; the W-2c corrects those taxes.   The income tax change will be handled on next year's return.   Your employer uses accrual based accounting - you use a cash basis method (most all individual taxpayers do) when paying taxes.   

[alng22209]

Understood, @DawnC  Thanks for explaining! 🙂