Using corrected W-2 or original W-2 when employer collects more SS Tax but does not issue a refund.

[hars----]

My employer withheld more SS Tax than was needed by about $5000 for 2018. I contacted them when I saw this - in Mar 2019. They sent back a corrected W2 but said I need to collect my refund from the government since they had already transferred funds to the government. So my question is as follows: I thought the employer was supposed to issue the refund before sending me a corrected W2. Since they did not issue a refund, should I used the old or the corrected W2 on my return? My worry is if I used the corrected W-2, then how do I show that more SS tax was collected and that employer did not actually issue the refund?

[bosso3 · Accepted solution]

It sounds like you are stating the original W2 showed the correct dollar amounts that were actually paid to you and actually withheld for SSA taxes (even though some SSA taxes were inappropriately withheld).  Then the corrected W2 shows an incorrect SSA withholding amount.

IF that is the case, you may want to contact your employer again, and request another revised W2, going back to the original W2's accurate data.  Then use that data on your return.   (The W2 should show what actually occurred, regardless of whether it was a mistake.)

If that does not work, I refer you to https://taxmap.irs.gov/taxmap/faqs/faq_01-015.htm

Pay particular attention to the section "I received an incorrect Form W-2. My former employer won’t issue me a corrected Form W-2. What should I do?"  Refer to topic 159  and form 4852. 

Topic 159 describes how to get a transcript from the IRS with info actually paid.  It is accessible here:  https://taxmap.irs.gov/taxmap/taxtp/Tt150_18-010.htm  This data should match the Year-to-date data on you final 2018 pay check stub. 

Form 4852 and instructions are located here.  https://www.irs.gov/pub/irs-pdf/f4852.pdf