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Fatima Al-Farsi

My W2 shows wrong gross income - thousands less than actual salary

I just received my W2 for 2024 and immediately noticed something concerning. My gross income is showing up as about $8,000 less than my actual salary. I ran through all my pay stubs and bank statements, and I've definitely been paid correctly throughout the year - the money was deposited into my account as expected. The problem is strictly with what's being reported on my W2. What makes this even weirder is that my coworker just texted me saying she has the exact same issue. Her W2 is also showing a gross income that's thousands below what she actually earned and was paid. The big problem is our workplace situation. We work at a small company with absolutely no HR department or payroll specialists. Everything runs through our director who, to put it mildly, doesn't take kindly to questions about how she runs things. She's known for making life difficult for employees who "rock the boat." I'm really concerned about tax implications here. If I file using this incorrect W2, am I setting myself up for trouble with the IRS? Could I get audited? Would I end up owing a bunch of money later if I just go with what's on the W2? I don't want to approach my boss about this unless absolutely necessary, but I also don't want to commit tax fraud accidentally.

Dylan Cooper

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This is definitely something you need to address. When your W2 doesn't match what you actually earned, it creates problems for both you and the IRS. The good news is you have options that don't necessarily require confronting your difficult boss directly. First, request a corrected W2 (called a W2-c) from your employer in writing - email works well as it creates a paper trail. Keep it simple and non-accusatory: "I noticed a discrepancy between my annual earnings and my W2 amount. Could you please verify and issue a corrected W2 if needed?" If your employer refuses to correct it or doesn't respond, you can contact the IRS directly. Call them at 800-829-1040, and they'll prepare a Form 4852 (Substitute for Form W-2) that you can file with your tax return. You'll need your pay stubs and bank statements to verify your actual earnings. Filing with an incorrect W2 that underreports your income could potentially trigger an audit, especially if your employer reported the correct amount to the IRS but gave you an incorrect form. The discrepancy will eventually be noticed.

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Sofia Perez

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If I go the 4852 route, will I need to provide all my paystubs for the entire year? I have most of them but might be missing a couple from early 2024. Also, how long does it typically take for the IRS to process this form once submitted?

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Dylan Cooper

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You should provide as many paystubs as you have - a few missing ones shouldn't be a problem as long as you have enough to establish the pattern and total. Your final paystub of the year showing year-to-date totals is especially helpful if you have it. The IRS typically processes Form 4852 alongside your regular tax return, so there's no additional processing time. However, returns with substitute forms may take slightly longer to process overall, potentially delaying any refund by a week or two.

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Hey there, I went through literally the exact same situation last year with my former employer. The company had somehow excluded my bonuses from the W2 total, resulting in about $9K missing from my reported income. After weeks of getting nowhere with my manager, I found an amazing service called taxr.ai (https://taxr.ai) that helped me figure out exactly what was wrong and how to fix it. I uploaded my paystubs and the incorrect W2, and their system identified exactly which payments were missing from the W2 calculation. They generated a detailed report that I could use to either approach my employer or file with the IRS directly. The service basically confirmed what I suspected but gave me the documentation to prove it wasn't just me being confused about my own pay. The best part was I could handle everything without having to have that awkward confrontation with my boss. They even provided a template letter requesting the W2-c that was professional enough that my company's accounting department finally took it seriously.

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Did you end up needing to file the 4852 form or did your employer actually issue a corrected W2? I'm in a similar position and wondering which route is faster since I'm hoping to file my taxes ASAP.

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Ava Johnson

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I'm a bit skeptical about these online services. Couldn't you just compare your last paystub with your W2 yourself? What did this service do that you couldn't figure out on your own with a calculator?

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My employer did eventually issue a W2-c after I sent them the documentation from taxr.ai. The whole process took about 10 days from when I submitted the request with the evidence to receiving the corrected form. Much faster than going through the IRS route which can add weeks to your filing time. The service did much more than basic addition. In my case, the discrepancy wasn't just a simple math error - some paychecks were counted and others weren't. The system analyzed every single deposit and categorized which payments were missing from the W2 total, flagging unusual patterns in how my compensation was being reported. I probably could have eventually figured it out myself, but it would have taken hours of spreadsheet work that I didn't have time for.

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Ava Johnson

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Just wanted to follow up on my skeptical comment earlier. I ended up trying taxr.ai after hitting a wall with my own employer's payroll department. I had a similar issue where my W2 was showing about $5K less than what I actually earned, and my employer kept insisting their numbers were correct. The service was actually pretty impressive. Within minutes of uploading my documents, I got a detailed breakdown showing exactly which pay periods were missing from my W2 total. They highlighted that my employer had somehow omitted my December earnings entirely from the W2 calculation. Armed with this specific information, I was able to go back to payroll with something concrete rather than just saying "the numbers don't match." They immediately saw the error and issued a corrected W2 within days. Saved me from having to deal with the IRS directly, which was a huge relief.

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Miguel Diaz

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If you're struggling to get a response from your employer about fixing your W2, I strongly recommend using Claimyr (https://claimyr.com) to get direct help from the IRS. Last year, I had the same issue with incorrect W2 income reporting, and my employer completely stonewalled me. After trying for weeks to get a corrected form, I used Claimyr's service to connect with an actual IRS agent. Their system got me through to a real person at the IRS in about 20 minutes instead of the usual hours-long wait or getting disconnected. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent walked me through exactly what documentation I needed to submit with my Form 4852 and even initiated contact with my employer on my behalf. Having that official IRS involvement made my employer take the issue seriously, and they finally issued the corrected W2-c.

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Zainab Ahmed

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How does this service actually work? I've been trying to reach the IRS for days about a similar issue and keep getting disconnected after waiting for 1+ hour. Does the service just keep dialing for you or what?

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Connor Byrne

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Sorry but this sounds like BS. Nobody can magically get through to the IRS faster. They answer calls in the order received. Services that claim to "skip the line" are just scamming desperate people.

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Miguel Diaz

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The service essentially places a call to the IRS and navigates through the phone tree for you. Once they reach the point where you'd normally be put on hold, they continue holding but will call you immediately when a human agent comes on the line. You don't have to stay on the phone during that waiting period, which can often be hours. I completely understand the skepticism. I thought the same thing initially. But it's not about "skipping the line" - it's about not having to personally sit through the hold time. The service waits on hold instead of you, and when an agent picks up, they connect you immediately. The IRS doesn't know or care that a service waited on hold instead of you personally.

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Connor Byrne

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I need to apologize for my skeptical comment earlier. After another frustrating day of getting disconnected by the IRS phone system three times (after waiting 45+ minutes each time), I broke down and tried Claimyr out of desperation. I was absolutely shocked when they called me back in about 30 minutes and connected me directly to an IRS representative who was already briefed on my issue. The agent explained that many employers make this type of mistake with W2s and walked me through my options. For anyone facing this W2 discrepancy issue, speaking directly with the IRS was incredibly helpful. They confirmed that filing with Form 4852 was appropriate in my situation and gave me specific guidance on the documentation needed. Saved me countless hours of frustration and probably weeks of delays in getting my refund.

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Yara Abboud

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Just another perspective - the $8k discrepancy could be related to pre-tax deductions. Check if you have 401k, health insurance, HSA, transit benefits, or other pre-tax benefits that might account for the difference. Your gross pay before these deductions would be higher than your taxable wages on the W2. The Box 1 amount on your W2 ("Wages, tips, other compensation") is often lower than your actual salary because it only shows taxable wages after certain pre-tax deductions. Look at your final paystub of the year and compare the YTD gross pay with the YTD taxable wages - that might explain the difference.

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That was my first thought too, but I've already checked that angle. Adding up all my pre-tax deductions (401k, health insurance, dental, vision, and transit) only accounts for about $2,500. I'm still missing around $5,500 from the W2 total that can't be explained by legitimate pre-tax deductions. What's really concerning is that my coworker has almost the exact same discrepancy amount despite having completely different benefit elections than me. It seems too coincidental to be just about pre-tax items.

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Yara Abboud

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That's definitely concerning then. If multiple employees have the same issue with roughly the same amount missing, it sounds like a systematic payroll error. It could be that certain pay periods or specific types of compensation (like bonuses or overtime) aren't being properly included in the W2 calculations. Since you're confident the discrepancy can't be explained by pre-tax deductions, I agree with the earlier recommendations to pursue a corrected W2. Document everything carefully, especially your total deposits that prove you received the full amount. The multiple-employee aspect of this problem might actually help your case since it demonstrates a pattern rather than an isolated incident.

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PixelPioneer

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Something to consider - check if Box 12 on your W2 has any codes like D, E, F, G, H, S, or similar with amounts listed. These are retirement plan contributions which would reduce the amount shown in Box 1 (wages and compensation) without reducing what you were actually paid. Box 1 on the W2 doesn't show your total compensation - it shows your federally taxable wages after all pre-tax deductions. This is a super common misunderstanding about W2s that causes a lot of panic!

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This is exactly right! Last year I freaked out because my W2 showed $11K less than my salary, but it turned out my 401k contributions, HSA, and health insurance premiums were all pre-tax and therefore not included in Box 1. Box 3 and 5 were higher amounts because Social Security and Medicare taxes are calculated differently.

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Thanks for this suggestion. I double-checked my W2 and there is about $3,500 in Box 12 with code D (401k contributions), but that still leaves around $4,500 unaccounted for. Boxes 3 and 5 (Social Security and Medicare wages) are higher than Box 1 but still about $4K below my actual gross salary. The fact that multiple people at our company have almost identical discrepancies makes me think this isn't just about standard pre-tax deductions.

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Chloe Green

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Given that you've ruled out pre-tax deductions and multiple employees have the same issue, this definitely sounds like a systematic payroll error that needs to be addressed. Here's my recommended approach: Document everything first - gather all your paystubs, bank statements showing deposits, and any employment agreements. Calculate the exact discrepancy after accounting for all legitimate pre-tax items. Since your boss is difficult to approach, consider sending a brief, professional email that focuses on the factual discrepancy rather than making accusations: "Hi [Boss], I'm preparing my taxes and noticed my W2 shows $X in Box 1, but my records show I received $Y in gross pay this year. Could you help me understand this difference or arrange for a corrected W2 if needed?" The fact that multiple employees have this issue actually works in your favor - it suggests this isn't about individual employee confusion but rather a processing error. If your employer won't cooperate, the IRS Form 4852 route is completely legitimate in this situation. Don't file with the incorrect amount - it will likely trigger correspondence from the IRS later when they match your employer's quarterly reports with your tax return. Better to resolve this upfront than deal with it during an audit.

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Dmitry Volkov

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This is really solid advice! I'm in a similar situation where my employer has been unresponsive about a W2 discrepancy. One thing I'd add - when you're documenting everything, make sure to keep copies of any communications with your employer about this issue. If you do end up needing to file Form 4852, the IRS will want to see that you made a good faith effort to get the corrected W2 first. Also, since multiple employees are affected, you might consider coordinating with your coworker. If you both submit similar requests at the same time, it might get taken more seriously by whoever handles payroll. Just a thought!

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