Form W-2C - Corrected Wage and Tax Statement

Form W-2c, Corrected Wage and Tax Statement, is the form an employer uses to correct errors on a Form W-2 that was already furnished to an employee and filed with the Social Security Administration. An employer issues a W-2c when it discovers a mistake in reported wages, tax withheld, the employee's name or Social Security number, or other items on the original W-2. The corrected form shows the previously reported amounts and the correct amounts so the employee and the Social Security Administration can update their records. Employees use the W-2c to file an accurate tax return or, if they already filed, to determine whether they need to amend. Because the IRS and Social Security Administration match wage data against returns, correcting errors with a W-2c keeps the employee's earnings record and tax return accurate. Employers must file the W-2c with the Social Security Administration and furnish a copy to the employee promptly after finding the error.

When you receive a Form W-2c, you should compare the corrected figures to what you reported or were about to report, because the correction may change your tax return. If you have not yet filed, use the corrected amounts from the W-2c rather than the original W-2 when preparing your return. If you already filed your return using the original, incorrect W-2, you may need to file an amended return on Form 1040-X if the correction changes your income, withholding, or tax. Small corrections, such as a fixed Social Security number that does not change the dollar amounts, may not require an amendment but should be kept with your records. Because the IRS matches wage data against your return, using the corrected figures prevents a mismatch and a possible notice. If you are unsure whether the change requires amending, comparing the original and corrected amounts shows whether your reported tax would be affected.

Whether you need to amend your return after receiving Form W-2c depends on whether the correction changes the income, withholding, or tax you reported. If the W-2c changes your taxable wages, federal income tax withheld, or other amounts that affect your tax calculation, and you already filed your return, you generally should file an amended return on Form 1040-X to reflect the correct figures. If the correction is to non-financial information, such as fixing a misspelled name or an incorrect Social Security number while the dollar amounts stay the same, you usually do not need to amend, though you should keep the W-2c with your records. If you have not yet filed, simply use the corrected amounts and no amendment is needed. Because the IRS matches the corrected wage data the Social Security Administration receives against your return, amending when the numbers change keeps your return consistent with IRS records and avoids a later notice about the discrepancy.

Form W-2c is issued by the employer, not the IRS, because the employer is responsible for the accuracy of the wage and tax information it reports. When an employer discovers an error on a W-2 it already filed and furnished, it prepares Form W-2c showing the corrected information and files it with the Social Security Administration, which maintains employees' earnings records, while providing a copy to the employee. The IRS does not generate W-2c forms; instead, it receives wage data from the Social Security Administration and matches it against tax returns. If you believe your W-2 is wrong, you should contact your employer to request the correction rather than the IRS. If the employer fails to correct a genuine error, you can contact the IRS for assistance and, if necessary, use Form 4852 as a substitute. Because the employer controls the payroll records, the W-2c originates with the employer as the party able to verify and correct the figures.

There is no single fixed deadline for issuing Form W-2c, but employers are expected to correct errors promptly after discovering them to keep employees' wage records and tax filings accurate. Because the Social Security Administration uses W-2 data to credit employees' earnings for future Social Security benefits, and the IRS matches the data against returns, timely correction matters. An employer that finds an error before the original filing deadline can often correct the original W-2 rather than issue a W-2c, while errors found later are corrected with the W-2c. Employers can face penalties for filing incorrect information returns, which encourages prompt correction. If you have identified an error and your employer is slow to issue a W-2c, you should follow up, and if the correction does not arrive before you must file, you can use Form 4852 as a substitute and amend later if needed. Prompt correction keeps both your tax return and earnings record accurate.