W2 I got from an employer seems to be wrong

[bwilx]

I got a W2 from an employer with whom I did just a little bit of work in 2022.

I think the W2 has errors:

Box 1 (Wages, tips) 202.00
Box 2 (Federal income tax withheld) 143.65
Box 3 (Social security wages) 688.00
Box 4 (Social security tax withheld) 42.60
Box 5 (Medicare wages and tips) 688.00
Box 6 (Medicare tax withheld) 9.99
Box 17 (State income tax) 17.55

I didn't get health insurance of allocate any money in a 401k or anything with this tiny side job.

How can box 1 be only $202.00 when Box 3 is $688.00 ?

I already contacted the employer and feel they're not going to do much to fix it.  I will keep trying for a few days on that.  But I think I'm supposed to report this discrepancy to IRS, right?

Is there any reason why this W2 should have this discrepancy!?

[RobertB4444]

Please clarify - is there anything in box 12?  If not then there is definitely a discrepancy.  The difference could be explained with a retirement plan of some kind but otherwise no.

@bwilx

[bwilx]

Definitely nothing in box 12.  No retirement plan deductions, nothing.   It's just a tiny side job where I worked for them like 5 or 6 nights the entire 2022 year.   

The W2 is from ADP.  I tried contacting ADP, but they have no "Contact Us" or support page on their website. I guess they don't want inquiries like this.

I thought there's a way to report this screwball W2 to the IRS or something - force the employer to fix it.  Anyone know anything about that?

[RalphH1]

The IRS does have an official process for when an employer won’t correct a W-2 (or send one to begin with), and it’s described here. Unfortunately (especially if you have a significant refund!), it involves calling them (the IRS) first, and they don’t want to hear from you about this until the end of February.

When you do call them, they’ll make a record of the contact (the intent of which is to clarify your possible eventual income discrepancy in their system) and send a letter to the employer. And they’ll also send you this Form 4852, which you’re advised to fill out and mail in with the rest of your return “in sufficient time to file your income tax return timely.” (You can print the 4852 from our program too—here’s the TurboTax-specific process.) Given the time frame and inability to e-file, bwilx, we’re sure hoping that things turn around and your efforts to get the employer to fix it yield results!

[bwilx]

"inability to e-file" ?!?!
You mean I won't be able to e-file because of this?
I have a fairly complex tax situation, with lots of interest, capital gains, dividend income, etc.   Please tell me I will be able to e-file still.   I have e-filed with TurboTax the last several years.

[ThomasM125]

The box 1 and box 2 entries, which report your income and tax withheld, are probably the only entries that will impact your tax return. If the income is correct then you will be OK to report the W-2 as it is stated. If the company actually paid in the withholding amount as reported, then you will get credit for it when the tax return is processed. If the company corrects the W-2 later on or reported a wrong withholding amount, then you may get a letter from the IRS requesting you pay some of the withholding back sometime in the future.

[kristinglass]

I am having a similar struggle.  I received a W2 for a restaurant job where I earned both wages and tips.

Box 1: 11630.37

Box 2: 194.37

Box 3: 11630.37

Box 4: 721.08

Box 5: 11630.37

Box 6: 168.64

Box 7: 6244.92

There is nothing in any other boxes except for a nominal amount to CA SDI in box 14 and 208.90 in state taxes in Box 17.  It is my understanding that Box 3 and 7 should add up to Box 1 (wages, tips, other). 

I contacted my employer about this but they are claiming these are the numbers that they received from the payroll company and I should take it up with them.  The payroll company (also ADP) doesn't talk to employees. 

What I am wondering is how big of a deal is this?  I've called the IRS twice and was told by one person that I had to wait until May 21 when they were guaranteed to have the record of the W2 from my employer on their end.  I was told by another person that they thought I should just file my taxes with it as is. 

Is this a big deal?  Technically, the right amount was deducted and paid.  It's just parsed out wrong on my w2. 

I don't know who else to ask for advice when even the IRS is basically shrugging their shoulders about it.

[BillM223]

kristinglass

Your employer's reluctance to fix their problem - you don't blame this issue on a payroll processor - is possibly taking money away from you.  Your employer is responsible for the accuracy of forms with their name on them which they copy to the IRS.

So were your Wages (box 1) really $11,630.37? And your tips (box 7) were $6,244.92? Then your gross Wages and Income (box 1) are underreported (should be $17,015.82), which will cause you to underpay your taxes. 

And the alternative might be that your Wages were $5,385.45 ($5,385.45 + $6,244.92 = $11,630.37), then your employer's mistake is costing you unnecessary SS tax (because box 3 should be your Wages but not your SS tips). That is, box 3 should be $5,385.45 . 

Remind your employer that they are matching the amount of SS tax and Medicare tax that you pay, so in the second case, they are overpaying, too.

@kristinglass 

[kristinglass]

Thank you so much for responding!

Yes, my wages in Box 1 are correct.  $11630.37 and this is also the YTD gross pay amount on my final paycheck stub.

So yes, they are over reporting my wages in Box 3.  Box 3 should be $5385.45.

The correct amount of SS taxes was paid.  It was 6.2% of the gross wage amount of 11630.37.

So, it's just a transposition error really.  Or parsing error.  Wrong number included because, I'm going to assume, they didn't know better. .   In other words, this isn't a case of actual over or underpaying of taxes.

So what happens if I can't get them to alter the document?  What is my recourse so my taxes are correct?  I tried to see if I could fill out the form 4852 via turbo tax, but that option only pops up if I state that I didn't receive a w2.  But obviously that's not the case.  Do I really have to file by hand in order to submit the proper documentation as another responder stated above? 

[DianeW777]

Yes. Your tax return will need to be mailed with a substitute W-2 (Form 4852). Filing the Form 4852 is the correct action, if your employer will not make the correction, so you can say 'no you didn't receive a W-2'.  You will mail your tax return so you will include a copy of it, if your employer will not correct it. 

If your employer corrects the W-2, you will simply file your return with the correct W-2 (and a W-2c provided by the employer when they correct it). If you know you have a refund you can wait for your employer's correction.  If you have a balance due, you want to file on time, then if necessary amend later.

Please update if you have more questions and one of our experts will help.

[kristinglass]

OK.  Can I still complete my taxes with turbotax and then just mail them in rather than efile?  I would delete this w2 from the system, reenter manually and select that I don't have my w2 from the list so I can complete form 4852?  I've already called the IRS twice and got the ball rolling and have a form 4852 on the way, but the individual I spoke with said it was acceptable to use turbotax to complete the form. 

Also, as for filing on time, I am in a declared disaster area in CA and it is my understanding that I have until Oct 16 to submit my taxes.  I didn't think I needed to file for an extension or anything.  My understanding is the date was postponed and that we were good to go.  No form needed or official filing of extension needed.  Am I right on that? 

[BillM223]

Please check this IRS Notice and make sure that you are in one of the counties listed. If so, there is no need to file an extension - the IRS has extended the deadlines for affected taxpayers automatically.

Take the IRS's advice and e-file with the 4852 in TurboTax (you don't have to wait for the mail). In the W-2 section, there is a check box (I think) for opening the Substitute W-2.

[kristinglass]

Excellent!  Thank you so much to all who have responded! 

[kristinglass]

Quick follow-up question.  The IRS notice that was linked in the last message does not have my county listed.  But this one does.  Is this notice at the link I am referencing still valid?  I think they are two separate declarations, but I obviously want to be sure so I don't unintentionally file late.  Thank you!

[kristinglass]

Sorry!  That last link was wrong.  This is the one I am wondering if it is still valid.

https://www.irs.gov/newsroom/irs-califo[product key removed]ms-qualify-for-tax-relief-april-18-dead[...