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Fixing Federal Income Tax Withheld (Box 2) on a W-2

Incorrect federal income tax withholding in Box 2 can lead to an employee underpaying or overpaying their taxes. To fix this, you must file a W-2c to show the original incorrect amount and the newly calculated correct amount. This ensures the correct tax information is on file with the IRS.

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's details.
4. In the "Previously reported" column, enter the incorrect amount from Box 2 and all other original data.
5. In the "Correct information" column, enter the correct amount for Box 2.

6. Review the form and click Save.
7. 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".
8. 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".
9. 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.
10. Provide the employee with a corrected W-2c.

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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.