After filing the taxes, my employer says the W-2 is wrong. Do I have to fill the tax forms again?

Question

Apparently they overpaid me last year - they didn't even realize when they sent me W-2. Now they want me to repay the overpaid amount and told me that they would provide an adjusted W-2. Do I have to fill in tax forms again this year or can I adjust it next year when I file taxes?

Answer 1

you can have your taxes ammended... if you had them done somewhere, I know H&R Block does it... if you do your own taxes Im not sure but contact a local tax office for suggestions.

I say if they paid you too much that is their fault and you should be able to keep the difference!

Answer 2

No.  You have to file an amended return for last year.  Each year stands alone.

Answer 3

When the corrected W-2 is issued you should file an amendment to reflect those figures.  Amendments are filed on IRS forms 1040X .  Since you will likely owe less tax the IRS are unlikely to do or say anything if your do not file the amendment.

Answer 4

Your company is confused.  They already paid you for 2007 and issued a W-2 that correctly reflected the income in 2007.

If you repay them, they can adjust your 2008 W-2 or give you a letter stating that you repaid them.  If your 2008 W-2 doesn't show the adjustment, you will have a "repayment" in 2008--which is a pain.  If they amount you had to repay is $3000 or less, it becomes a lousy schedule A deduction.  If it's $3000 or more you can take either a deduction or a credit for the difference in tax you had to pay in 2007--but you do not amend the 2007 return.

Answer 5

A copy of a corrected W2 form will also be sent to the IRS.  You will have to amend your 2007 taxes both federal and state.