What To Do? My W-2 Is Wrong.

[westguy76]

I have recentley recieved my W-2 from my current employer. I have noticed that It says I made less than I thought I did. Going back two months in my paystubs I have confirmed that I made more than what was stated at the end of the year. The spot on my paystubs that shows amount made to date on the year was wrong at one point and never corrected. Also my employer put the last 2 weeks of December as money made in 2008. All in all a pretty good chunk of money i made in 2007 is not showing up on my year end w-2.

Should I be concerned. I'm pretty sure it was an error. Wouldn't it be adventageous to me to just turn a blind eye and report less than I made (taxwise) Or, to correctley show I made more money in the year? Do I benefit? What do you think? Why should I get it corrected. I need advice. Thanks

[ricco67]

I would suggest that you go to your Employer about it.

While the temptation to just "let it slide" is there, you might get dinged on it if it doesn't quite match up with what the IRS has on its records.

[westguy76]

I would suggest that you go to your Employer about it.

While the temptation to just "let it slide" is there, you might get dinged on it if it doesn't quite match up with what the IRS has on its records.

But, how could this be traced back to me this is my employer's mistake. It is not on me to go back through my paystubs and verify they didn't make a mistake somewhere in the year. I only noticed it because in the middle of November I payed attention to see what I was in line to make for the year. After a decent Christmas bonus I noticed that I did not make what I thought I was in line to make. Turns out that I did make more than they said I did on my w-2.

[ricco67]

Your boss reports on your taxes every 4 months, and the numbers have to jibe.

If you were to take the deduction on your boss's mistake into a lower tax bracket, you're going to get a higher tax refund that, technically, you didn't deserve.

But it's up to you on what you want to do. *I* am not the one who is going to get an audit.

[ssullivan]

You don't want to mess with the IRS on this. You should talk to your employer and request a corrected W-2. Also keep in mind that it not only affects your taxes, but also your potential future Social Security retirement benefits could be reduced by this error.

I work in HR consulting. Trust me, you don't want to risk this. Odds are it will eventually get caught, and when it does, you'll possibly owe a penalty and interest to the government on any taxes you owe, which means you'll pay more than you would if you get it corrected and file an accurate tax return now. If you're owed a refund by the government, it's in your interest to get that money back now, which requires having an accurate W-2.

[westguy76]

I think I may overlooked the obvious?

I went to our office accountant and asked about what I thought was the error.

She pointed out that It was my medical and dental premiums that I was forgeting about. over $6000.00 for medical, ouch!!! and just over 1,000.00 for dental for the year.(which I am canceling) all of this comes out pre-tax. So it is not shown on my w-2 as taxable income. I was surprised that it was not shown on there at all. the amount I contribute to a 401K is shown and that is pre-tax too.

So at least one good thing came out of my confusion. I will not be paying for the dental insurance this year as I didn't realize how much money I was throwing away there. thanks for the opinions.

[ssullivan]

Wow you've got some really expensive benefit plans where you work. But glad you figured it out. Employers aren't required to itemize pre-tax insurance on the W-2, although many do in Box 14 as a courtesy to their employees, but the IRS really doesn't care about that.

[westguy76]

tell me about it. $1,000 deductable too!! I can't wait till my wife goes back to work fulltime and gets her own benefits as all that money is to cover her and the newborn. Thanks anyhow

[houstonmacbro]

But, how could this be traced back to me this is my employer's mistake. It is not on me to go back through my paystubs and verify they didn't make a mistake somewhere in the year. I only noticed it because in the middle of November I payed attention to see what I was in line to make for the year. After a decent Christmas bonus I noticed that I did not make what I thought I was in line to make. Turns out that I did make more than they said I did on my w-2.

I think tax laws read that you are still responsible for your taxes even if there is a mistake in the recordkeeping ... of course it's not in my exact legal lingo ... but you get the point.