How To: Making Corrections To Form 1099 & W-2

Have you found a correction that needs to be made on your Form 1099 or W-2? Well let go of any stress and worry becuase there is an easy solution. ExpressTaxFilings.com provides everything you need to make corrections to your transmitted forms. Let’s go over everything you need to know and I will show you exactly how to e-file each type of correction form.

Form 1099 Corrections
If you have e-filed your Form 1099 and see a correction that needs to be made, you must wait until the form has been accepted or rejected by the IRS/SSA. If the form was rejected, then you will simply make any needed corrections and resubmit. You will only need to complete and transmit a 1099 Correction Form if the 1099 was accepted by the IRS/SSA.

If your form was accepted and you need to make corrections, there are 2 types of errors that can be corrected using the 1099 Correction Form:

• Type 1 Errors: Incorrect tax amount(s), code, check box, payee name, or if the return was filed when it should not have been.

• Type 2 Errors: A payee number is missing (ex. TIN, SSN, EIN, QI-EIN, or ITIN), the name and/or address is incorrect, or the original return was filed on the wrong type of return (ex. 1099-MISC form was used to file a 1099-DIV

Type 1 and Type 2 errors can be corrected using ExpressTaxFilings.com. If you do realize there is a large number of corrections that need to be made for multiple recipients, you will need to contact the IRS customer service at 1-866-455-7438 for assistance.

Form W-2 Corrections
When there is a correction to be made on your W-2, there is only one form for the job – The W-2c. Snazzy name right? This form might not seem that amazing, but it has the power to correct errors on previously filed Forms W-2, W-2CM, W-2GU, W-2VI, or W-2c (oh yes, you can file a correction for a correction).

As soon as you discover a correction to be made, you will need to file Form W-2c. Also, a copy will need to be provided to the recipient. For the W-2c, the corrections you need to make will determine the section you will fill out:

Correcting Employee’s Name and/or SSN: When you only need to correct an employee’s name or SSN, you will only need to complete boxes d through i. Don’t enter anything in boxes 1 through 20. If your employee receives a new social security card following an adjustment to his or her resident status that shows a different name or SSN, file a Form W-2c for the most current year only.

Correcting An Incorrect Tax Year and/or EIN: To make this type of correction, you will need to enter the tax year and EIN origianlly reported, and enter in the “Previously reported” boxes the money amounts that were on the original Form W-2.  Enter zero (0) in the “Correct Information” boxes. Then, prepare a second W-2c for each affected employee. Enter zero (0) in the “Previously reported” boxes and enter the correct money amounts in the “Correct Information” boxes. Enter the correct tax year and/or correct EIN.

Correcting More Than One Form W-2 For An Employee: You have two options to make corrections for an employee where more than one Form W-2 ws filed under the same EIN for the tax year. You can (1) consider all the W-2s when determining the amounts to enter on Form W-2c, or (2) file a single Form W-2c to correct only the incorrect Form W-2.

Correcting An Employee’s Incorrect Address on Form W-2: If you filed a Form W-2 with the SSA that reported an incorrect address for the employee, but all other information on the form was correct, do not file Form W-2c with the SSA merely to correct the address. However, if the address was incorrect on the Form W-2 provided to the employee, you must do one of the following:

 1) Issue a new, corrected Form W-2 to the employee that includes the new address. Indicate “REISSUED STATEMENT” on the new copy. Do not send Copy A of W-2 to the SSA.

 2) Issue a Form W-2c to the employee that shows the correct address in box i, and all other correct information. Do not send Copy A of Form W-2c to the SSA.

 3) Reissue Form W-2 with the incorreect address to the employee in an envelope showing the correct address or otherwise deliver it to the employee.

It is a lot of information, but when you are actually filling out the 1099 Correction Form or the W-2c there is guided prompts to assist you on what to put where. Making corrections to your e-file 1099 or W-2 is easy with ExpressTaxFilings.com. If you have any questions, give our ExpressTaxFilings Support Pros a call at 704-839-2270 or send an email: support@expresstaxfilings.com