Received a W-2C

[wrigley]

My wife just received a W-2C from her employer for the 2020 tax year in which they say the SS Tax Withheld should have been $5291.26 vice $3669.10 which was the figure on her W-2 form. Is this error large enough to even warrant an amended return? And, MUST I submit an amended return?

Thanks
Mike

 

[latexman]

Don't you want the incremental refund? $1622!

 

[Sunset]

This is one reason I use tax software on my machine, hopefully OP did as well. Makes it easier.

What does her SS statement say (create an online account for SS if don't already have one).

I think filing an amended return will result in a refund (guessing your rate here) around ~$300

I would file an amended return as you probably want SS to be correct plus get the refund.

 

[SevenUp]

...SS Tax Withheld should have been $5291.26 vice $3669.10 which was the figure on her W-2 form.

Was the box 4 amount the only thing that changed?

 

[wrigley]

Was the box 4 amount the only thing that changed?

Yes.

 

[wrigley]

This is one reason I use tax software on my machine, hopefully OP did as well. Makes it easier.

What does her SS statement say (create an online account for SS if don't already have one).

I think filing an amended return will result in a refund (guessing your rate here) around ~$300

I would file an amended return as you probably want SS to be correct plus get the refund.

I did use tax software.

mike

 

[cathy63]

You don't report SS withholding on your 1040, so no need to amend your return since the calculations won't change. The correct course of action depends on what's in box 3 of the corrected W-2.

If they actually withheld $5291.26, then dividing by 6.2%, her box 3 wages should have been $85,342.90. Does that match up? If so, there's nothing for you to do except verify with SSA once earnings are updated for 2021. The employer has already straightened this out by filing the corrected W-2.

If her box 3 wages are actually more like $59,179.03 then $3669.10 is what should have been withheld and the new W-2 is showing that they actually withheld too much for SS. In that case, you are supposed to ask the employer to refund the excess withholding. If the employer refuses to fix it, file form 843 with the IRS to ask for the excess withholding to be returned.

 

[wrigley]

You don't report SS withholding on your 1040, so no need to amend your return since the calculations won't change. The correct course of action depends on what's in box 3 of the corrected W-2.

If they actually withheld $5291.26, then dividing by 6.2%, her box 3 wages should have been $85,342.90. Does that match up? If so, there's nothing for you to do except verify with SSA once earnings are updated for 2021. The employer has already straightened this out by filing the corrected W-2.

If her box 3 wages are actually more like $59,179.03 then $3669.10 is what should have been withheld and the new W-2 is showing that they actually withheld too much for SS. In that case, you are supposed to ask the employer to refund the excess withholding. If the employer refuses to fix it, file form 843 with the IRS to ask for the excess withholding to be returned.

Her box 3 wages are $85,344.10.

Mike

 

[RobbieB]

They under withheld and you owe the difference.

 

[SevenUp]

They under withheld and you owe the difference.

How are you calculating that?

 

[RobbieB]

Well if the SS tax was supposed to be 5291 and they only withheld 3669?

If this is true you shouldn't need to do anything, the IRS will send you a bill.

 

[cathy63]

Her box 3 wages are $85,344.10.

Mike

The new W-2 is correct then. You don't need to do anything for the IRS. On the first W-2, they just had the wrong number in box 4, now they've put the right number there.

The only other thing to do is verify that her SS earnings and contributions for 2021 are also shown correctly in her SS account. 2021 contributions might not be available online yet, so you might have to check back periodically until that's done.

 

[SevenUp]

Well if the SS tax was supposed to be 5291 and they only withheld 3669?

Yes, if they only withheld 3669. From the OP it seems the W-2C confirms that 5291 was actually withheld.

 

[Alan]

Yes, if they only withheld 3669. From the OP it seems the W-2C confirms that 5291 was actually withheld.

I’m sure the W-2C states what was actually withheld, not what should have been.

 

[wrigley]

The new W-2 is correct then. You don't need to do anything for the IRS. On the first W-2, they just had the wrong number in box 4, now they've put the right number there.

The only other thing to do is verify that her SS earnings and contributions for 2021 are also shown correctly in her SS account. 2021 contributions might not be available online yet, so you might have to check back periodically until that's done.

Thank You Cathy.

Mike

 

[nate2953]

Happened to me too. Our employer suspended FICA deductions for a part of 2020. Then in 2021 they withheld additional FICA taxes from our paycheck to make up for the period of time in 2020 when they were deferred. So my original 2021 W-2 was incorrect, and they issued a W-2C to show the actual FICA tax withheld. If I remember, the email said no amending of tax returns was necessary.