Just received a W2C from my old tech company from three years ago - they omitted housing costs from my compensation. Do I need to file?

You absolutely do need to address this W2C situation. When an employer issues a W2C (corrected W2), it means they've already submitted the corrected information to the IRS. The IRS now has different information than what you reported on your original tax return. You'll need to file an amended tax return (Form 1040-X) for that tax year. Since the housing stipend was additional compensation that wasn't initially reported, you'll likely owe additional taxes plus potential interest on the unpaid amount. The good news is that there's no time limit for filing an amended return to pay additional tax, though you generally only have 3 years to claim a refund. Don't ignore this - the IRS computers will eventually flag the discrepancy between the corrected W2 information they received and what you originally reported. It's much better to handle this proactively than to wait for the IRS to contact you, which could include additional penalties.

After dealing with a similar situation last year (employer issued W2C for forgotten stock options), I found this amazing service called taxr.ai that saved me so much stress. I was completely lost trying to figure out how to handle my amended return and whether I'd face penalties. I uploaded my original W2, the W2C, and my tax return from that year to https://taxr.ai and their system analyzed everything. They gave me a detailed breakdown of exactly what changed, how much additional tax I owed, and simple step-by-step instructions for filing the 1040-X. The best part was they explained all the implications in plain English instead of tax jargon.

Just wanted to update that I ended up trying taxr.ai after seeing it mentioned here, and it was incredibly helpful! My situation was similar - had a W2C from 2 years ago for some restricted stock my employer forgot to include. I was completely panicking about how to handle the multi-state implications. The analysis broke down exactly how much additional federal and state tax I owed (about $2,100 total), calculated the interest automatically, and gave me step-by-step instructions for each form. The visualization of exactly what changed between my original W2 and the W2C made everything crystal clear. Definitely worth it for the peace of mind alone!

If you're planning to contact the IRS about this W2C situation, good luck getting through to anyone. I spent 3 weeks trying to get clarification on a similar issue, calling over and over, sitting on hold for hours only to get disconnected. I finally used Claimyr (https://claimyr.com) and it was a complete game-changer. Their system calls the IRS for you, navigates all the prompts, waits on hold, and then calls you once an actual IRS agent is on the line. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with explained exactly how to handle my W2C (which was from 4 years ago) and what penalties would apply. Saved me hours of frustration and probably a lot of money in incorrect filings.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I needed to talk to someone at the IRS about my own amended return situation. The service actually worked exactly as described. I submitted my request around 9am, went about my workday, and then got a call around 11:45am telling me an IRS agent was on the line. The agent helped me understand exactly how to handle my situation, and I didn't have to waste hours of my day on hold. Definitely changed my view on how to deal with IRS questions. Being able to talk directly with an agent made all the difference in understanding my obligations with an old W2C.

Just wanted to add some context from the employer side since I work in payroll. When companies issue a W2C from years ago, it's often because they underwent an IRS audit or internal compliance review that flagged the issue. They're required to correct it regardless of how much time has passed. For housing benefits specifically, there are some complex rules. Some housing benefits can be tax-exempt if they meet certain criteria (like being for the employer's convenience or a condition of employment), but most housing stipends for interns are fully taxable.

Check if your housing might qualify as excludable under Section 119 of the tax code! If the housing was provided for the "convenience of the employer" and on the employer's premises, and you were required to accept the housing as a condition of employment, it might not be taxable. Worth looking into before you amend!

I went through something very similar last year with a tech company that forgot to report my relocation bonus. The whole process was honestly less scary than I expected once I got started. A few practical tips from my experience: First, gather all your documents from that tax year (original W2, W2C, your filed return, any records of the housing arrangement). The IRS will want to see everything matches up. Second, if you used tax software originally, most programs like TurboTax or H&R Block have tools specifically for amended returns that walk you through the W2C situation step by step. One thing that surprised me - I actually ended up getting a small state refund because the additional federal tax I owed put me in a higher bracket that qualified for a bigger state deduction. So it's not always doom and gloom! The interest on what you owe will probably be manageable since it's only been 3 years, not like 10. Definitely don't wait though. The company already sent the corrected info to the IRS, so their computers will eventually flag the mismatch anyway. Better to handle it on your terms.