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Correcting Social Security Tips (Box 7) on a W-2

Social Security tips (Box 7) are included in the calculation of an employee's Social Security wages and tax. If this amount is incorrect, a W-2c form must be filed to report the corrected tip amount, which may also require updating the wages and tax in Boxes 3 and 4.

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. Enter the incorrect tip amount in the "Previously reported" column of Box 7.
5. Enter the correct tip amount in the "Correct information" column of Box 7.
6. Manually update Box 3 (Social security wages) and Box 4 (Social security tax withheld) to reflect the new tips amount if it was not included previously.

7. Click Save.
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 the corrected form.

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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.