W2-C: Do I have to file an amended return if state income was wrong?

This is actually pretty straightforward! Since the W-2C only affects state allocation and doesn't change your federal income, you don't need to amend your federal return at all. Your federal taxes remain correct because the total income is the same. However, you will need to address the state tax situation. Since the W-2C now correctly shows all your income from California rather than split between California and Nevada, you should: 1. Check your original California state return - if you already reported all your income to California even though your original W-2 showed some Nevada income, you might not need to amend. 2. If you didn't report all income to California because you were following the incorrect W-2, you'll need to file an amended California state return to reflect the correct state income allocation. 3. If you filed a Nevada return (which doesn't have state income tax but might have been filed automatically with tax software), you may want to withdraw it. Keep both your original W-2 and the W-2C in your records for at least 3 years in case of questions from either tax authority.

I had a similar headache last year with incorrect state allocations on my W-2. I spent hours going back and forth with my tax software trying to figure out the amendments, then I found this service called taxr.ai (https://taxr.ai) that saved me so much time. You just upload your original tax forms plus the W-2C, and it analyzes everything to tell you exactly what needs to be amended and what doesn't. It confirmed I didn't need to touch my federal return but walked me through exactly what needed to change on my state returns. It also explained all the weird tax implications I hadn't considered, like how the state credit calculations were affected. Definitely less stressful than trying to figure it all out myself or paying an accountant just for a W-2C issue.

Just wanted to follow up about taxr.ai since I ended up using it for my 1099 correction issue. It was super helpful! The analysis was surprisingly detailed - it caught that my corrected 1099 affected my qualified business income deduction which I totally missed. The step-by-step amendment instructions made the process much less intimidating. I was able to complete my state amendment in about 30 minutes instead of the hours I spent just trying to figure out what to do before. Definitely worth checking out if you're dealing with any kind of tax form corrections, especially when it impacts multiple forms or calculations.

Dealing with the IRS directly on amended returns can be such a nightmare. When I had a similar W-2C situation last year, I needed clarification on some things but couldn't get through to anyone at the IRS. After being on hold for literally hours over multiple days, I tried Claimyr (https://claimyr.com) and it actually worked. They have this system where they navigate the IRS phone tree for you and call you back when they get a real human on the line. I was skeptical at first, but they got me connected to an actual IRS agent in about 40 minutes instead of the 3+ hours I spent getting nowhere by myself. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The agent confirmed that I didn't need to amend my federal return for state allocation changes and explained exactly what I needed to include with my state amendment. Saved me from potentially making mistakes on my amended filing.

I have to eat my words about Claimyr. After my skeptical comment I decided to try it anyway since I was desperate to talk to someone about my tax situation. It actually worked! Got connected to an IRS agent in about 35 minutes when I had previously spent 4+ hours on hold over two days without ever reaching anyone. The agent confirmed exactly what I needed to know about my amended return situation. For anyone dealing with W-2C issues like the original poster - the agent told me that state-only corrections generally don't require federal amendments unless they somehow change your federal tax situation (like affecting credits based on state taxes paid). Definitely worth getting that confirmed directly from the IRS rather than wondering.

I went through this exact thing last year! Just want to add some practical advice - make sure you keep a copy of both the original W-2 AND the W-2C together in your records. When I amended my state return, they actually asked me to submit copies of both forms. Also check if your state has an option to file an "adjustment" rather than a full amendment. Some states have a simpler process for W-2C corrections that doesn't require completely redoing your return. Saved me a ton of time!

One thing nobody mentioned - if you used tax software to prepare your original return, log back in and check if they have a guided amendment process for W-2C situations. I use TurboTax and last year they had a specific workflow for W-2C amendments that made it pretty easy. You just enter the information from your W-2C and it figures out what needs to be amended. For state-only corrections like yours, it correctly identified that I only needed to amend my state return and not my federal. Might save you some time versus figuring it all out manually!

Just went through this exact situation a few months ago! Your instinct is right - since the W-2C only changes state allocation without affecting your total income, you don't need to amend your federal return. The IRS doesn't care which state the income came from as long as the federal total is correct. For California, you'll likely need to file an amended state return (540X) to report the additional income that's now properly allocated there. The good news is California's amendment process is pretty straightforward online. Just make sure to include both your original W-2 and the W-2C when you file. Since you're still waiting on your California refund, I'd suggest calling the California Franchise Tax Board (FTB) first. They might be able to adjust your pending return directly rather than having you file a separate amendment, which could save you weeks of processing time. Their phone number is on the California tax website. One heads up - you'll probably owe additional California tax since more of your income is now allocated there, so be prepared for that when you make the correction!

Hey Oliver! I actually dealt with something very similar last year when my employer issued a W-2C that moved income between states. A few quick points that might help: First, definitely try calling California FTB before filing an amendment - they were surprisingly helpful when I called. Ask for the "Individual Income Tax" department and specifically mention you have a W-2C correction affecting state income allocation. They have a dedicated process for handling these situations. Regarding penalties - California typically won't charge penalties or interest when the error was due to employer mistake, especially if you're correcting it promptly after receiving the W-2C. Just make sure to keep documentation showing when you received the corrected form. One thing that caught me off guard - the additional California tax you'll owe might affect your estimated tax payments for this year if the amount is significant. California sometimes requires you to adjust your withholding or make quarterly payments going forward to avoid underpayment penalties next year. Also, since you already got your federal refund, you're in good shape there. The fact that your federal numbers didn't change at all makes this much simpler than it could have been. Just focus on getting the California situation sorted out and you should be all set!