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Correcting Federal Wages and Tips (Box 1) on Form W-2

Errors in Box 1, which reports federal wages and tips, can significantly impact an employee's tax return. Correcting this requires filing a W-2c to report the original incorrect amount and the new, accurate amount. This ensures the employee's income is accurately reported to the IRS and SSA.

Step-by-Step Instructions

1. Open W2Correction Mate and either create a new company or open an existing one.
2. Click on the W-2C Forms Tab and then click Add W-2C Form.
3. Enter the employee details.
4. In the "Previously reported" column, enter the incorrect amount from Box 1.
5. In the "Correct information" column, enter the correct wage amount in Box 1.

6. Click Save.
7. The software will automatically update the W-3c summary.
8. To print the employee's copy, select the W-2C Forms tab, select the employee from the list, click Print. In the dialog, select "Copy B—To Be Filed With Employee’s FEDERAL Tax Return".
9. To print the SSA copy, select the W-2C Form tab, select the employee from the list, click Print. In the dialog, select "Copy A—For Social Security Administration".
10. To e-file, select the Summary W-3C Form tab, and click E-File W-2C / W-3C Forms. Fill out information in the dialog, and click the Click here to review the W-3C form button. Click the I have reviewed the W-3C form box. Click OK. Once you create the e-File, you need to upload to the SSA BSO website.
11. Distribute a copy of the corrected W-2c to the employee.

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Disclaimer: All tutorials provided are for informational purposes only. Please consult the IRS, your state department of revenue, or a tax professional for official advice and guidance regarding tax matters, including W2 corrections and W-2C filing.