W-2 Incorrect State

[LilpilJhon]

Hello All,

I've incorrect state on the W-2 form (box 15). I've notified the employer but I think it's too late. What would be the procedure now? I've not yet filed taxes with IRS. 

I heard we need W-2c. How long does it take for the employer to generate W-2c? Do I've to wait for it or will I file taxes with the NY state?

Any lead is appreciated. Thanks.

[AliciaP1]

It's never too late to report a problem with your W-2 to your employer.  They are required to review it and make the correction if they agree.

The employer needs time to correct the form, but they should be attempting to get it done as soon as they can.  There is no specific time frame they have to get this done.

You do need the W-2c before you can file your taxes.  You should not file any of your forms based on the assumption that the corrected W-2 will look exactly like you think it should.

[LilpilJhon]

Thanks for the reply. @AliciaP1 

If I need to wait for W-2c from the employer and the employer is unable to produce it before the tax day i.e. 18 April, 2022 - do I still wait? 

Also, when we get W-2c we will use W-2c everywhere and disregard incorrect W-2?

Let me know your thoughts. Thanks. 

[ErnieS0]

You can file an extension if you are not going to get a corrected W-2 in time. 

If the only problem is state wages, you can file federal and a state only extension. You can find that in the state section.

Incorrect state wages will not impact federal. Incorrect state withholding may change federal, so wait if your state tax withheld is wrong.

Form W-2c will show the numbers that have been changed. Use your original W-2 for everything else.

Edited 03/29/2022 | 16:42 PT

New York requires employers to report total wages earned everywhere in W-2 Box 15. If you worked in more than one state, there is not need to get a corrected W-2. You can adjust your NY state earnings in the NY section. @LilpilJhon 

[LilpilJhon]

@ErnieS0 Thank you for your response. 

I've worked for only 1 employer starting March 2021 and in 1 state only i.e. WA.

Before that, I didn't work as I was a student back then.

I figured that the reason why I've NY on the W-2 is that the first pay-stub that I received had the old address of NY that I gave during applying and signing the job offer way back in December 2020. Back then I was in NY and not employed but I moved from NY in late December 2020. 

I changed the address via W4 form on March 18, 2021 after joining the company in mid-March. After the change of address, there were no deductions for the NY state but there was always a withheld on the paystubs for all paystubs in the year 2021 which I never noticed, unfortunately.

So basically, I paid NY state tax even though I moved from NY in December 2020 and never worked there. 

My employer's response when I requested a W-2c form:

"A corrected W2 will be issue in 4-6 weeks. This will be issued for the incorrect state (NY) only. You can file your other W2’s to meet the tax deadline.

The wages for the incorrect state (NY) will be zeroed out. Once the W2C is received, you will need to file a non resident return with New York to recoup any taxes withheld."

Now, I'm confused should I wait for W-2C? If yes, I'll run the deadline. I don't have any other W-2C form. This was the only one that I've had. Should I request an extension and wait for a corrected W-2C? 

Please suggest in accordance. Thanks.

[KrisD15]

As ErnieS0 stated, you don't need the corrected W-2 to file the federal return. 

The federal return is not concerned with the state tax reported on your W-2. 

You have two options for state filing. 

File the non-resident New York return and indicate zero wages for New York. 

You should have the NY tax that was withheld refunded. 

Wait for the corrected W-2 and then file the non-resident NY return to obtain the refund. 

If there will be no New York tax owed, you will not get a late filing penalty if you miss the deadline to file. 

Although the state wages are listed as New York on your original W-2, you should be able to use that W-2, allocate Zero wages on your return, and receive the state tax that was withheld in error refunded. 

You DO NOT need to wait for the corrected W-2. 

[LilpilJhon]

I consulted a tax expert and according to him. 

I need to file for an extension and pay the remaining NY tax for the year 2021 and then later when I get the corrected W-2C form, I will request a refund from the NY tax department for the entire amount. 

Should this be the way to go? Please help/suggest. Thanks. 

@KrisD15 @ErnieS0 @AliciaP1 

[DianeW777]

Yes. That way is perfectly acceptable.  You must file NYS extension request using Form IT-370, Application for Automatic Extension of Time to File for Individuals because NY does not accept the federal extension. You may not need to file a federal extension unless you are itemizing deductions and the state tax withholding would help.

The idea is that you will not be penalized for underpayment and when you amend your return you will obtain the appropriate refund.  You may even get interest.

• If your refund is: 
  1. not issued within 45 days of the due date or from the date you filed (whichever is later), interest will be paid from that date.
  2. issued within 45 days of the due date or from the date you filed (whichever is later), you will not receive interest.

You can file using TurboTax using e-file or online by clicking here.

@LilpilJhon

[LilpilJhon]

Thanks for the response. 

I'm still confused on the part that should I still give ~ $6000 more to NY state before 18 April, 2022? and file an extension? 

Or

Just file an extension and don't give the ~ $6000 amount. 

~ $6000 is the amount that was not deducted for the NY state tax in 2021 and which I ideally DO NOT owe. 

But since Box-15 on the current W2 form says NY - it indicates that I've payed ~ $6000 less state tax in 2021.

Please clarify. Thanks. 

@DianeW777 @KrisD15 @ErnieS0 @AliciaP1 

[BillM223]

What is this ~$6,000 amount? Is it the amount of NY state tax that was withheld by your employer?

To file an extension, follow Diane's instructions, and pay at that time whatever you expect to owe to NYS. But if I follow this thread correctly, you don't expect to owe NYS anything, so don't pay them anything when you file for the NYS extension.

If you meant something else (I honestly don't know what "~ $6000 is the amount that was not deducted for the NY state tax in 2021 and which I ideally DO NOT owe. But since Box-15 on the current W2 form says NY - it indicates that I've payed ~ $6000 less state tax in 2021." means), please come back and tell us.

@LilpilJhon