There are ways to correct your tax information and still file your taxes on time. So there may be a teeny-weeny little mistake on your form. You caught it, but you think, what's the harm? Actually, that little mistake can turn into big problems if it remains uncorrected. An incorrect W-2 form may throw off your tax return numbers, preventing you from receiving a refund, or causing a tax debt you don't owe.
If the IRS sees the mistake, it can also trigger an audit. Therefore, the best way to deal with the situation is to get the W-2 corrected as quickly as possible. Just make sure you've entered your current mailing address in the Personal Info section of TurboTax. If you expect to get another W-2 from the same employer next year, ask their payroll department to update your address so next year's W-2 doesn't get lost in the mail.
On the other hand, if your name, Social Security number, or any dollar amount s on your W-2 are wrong, ask your employer for a corrected W-2 also known as Form W-2c: Corrected Wage and Tax Statement.
View solution in original post. I see that the recommendation is to use your new address in the personal section, but I would like clarification on the address if I am entering my w-2 by hand. Do I duplicate the address as it was on the W-2 my old address so that what I enter matches the w-2 issued, or not? The address on the W-2 makes no difference. Just enter the address in the personal information section where you receive your mail. You can put whatever address you like when making the W-2 entries - as long as your name and SSN are correct, then the tax information will get processed correctly.
In your W-2 interview, use the address shown on the W-2 but make sure the address in your Personal Info section is the most current.. People move constantly and employers make mistakes in their payroll forms and systems. If your W-2 is incorrect, there are a few steps you can take to make it IRS-ready. Believe it or not, errors on W-2s are fairly common.
So common, in fact, that the IRS has a three-step process for getting mistakes corrected. They simply go by what the employer says. A taxpayer may also realize a W-2 is incorrect during the process of filing. If an error shows a dramatically higher income or lower withholding than actually occurred, that employee could find himself in a situation in which the IRS erroneously thinks he owes a great deal of money.
This involves pulling out all your paystubs and getting the total amounts of your pay and withholdings, then matching it to the reported information. By doing all of these calculations before you contact your employer, you may find it expedites the process since your employer will know she was in error.
In some cases, your W-2 form may simply have your name misspelled or an outdated address. If your employer can issue a corrected W-2, though, it will make things easier for everyone. In addition to financial information, one area of your W-2 that is essential is your Social Security number. In this case, the IRS will send you Form so that you can estimate the data that would otherwise be on your W-2 and file your taxes.
Once your W-2 has been squared away, take a few minutes to check your online account with Social Security to ensure that you have accurate earnings reported, said Dombroski. If those earnings weren't properly reported and taxed, it could affect your retirement benefits down the line, Dombroski said. If you were so proactive that you mistakenly filed your tax return early with the wrong data — only to get a W-2c later — you may have to file an amended return.
Consider bringing your corrected W-2 to your tax preparer or CPA to determine the magnitude of the change versus the cost of amending your return, said Weston. You could let the IRS bill you and pay it when you get the notice.
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