W2 shows incorrect gross income - several thousand dollars off

This is definitely concerning, but you need to address it before filing your taxes. The W2 your employer submits to the IRS needs to match what you report on your tax return. First, double-check your math. Make sure you're accounting for pre-tax deductions like health insurance, 401(k) contributions, HSA contributions, etc. These can make your gross income on the W2 appear lower than your salary. If you've verified there's truly an error, you should request a corrected W2 (Form W-2c) from your employer. I understand the concerns about your manager, but tax compliance isn't optional. Maybe approach it neutrally: "I noticed a discrepancy between my records and my W2. Can you help me understand this or provide a corrected form if needed?" If your employer refuses to correct the W2, you can contact the IRS directly at 800-829-1040. They can reach out to your employer on your behalf and send you a Form 4852 (Substitute for Form W-2) to file with your tax return.

I had a similar issue last year and was totally stressed about it. After spending hours on hold with the IRS and getting nowhere, I used https://taxr.ai to analyze my paystubs and W2. They have this document comparison tool that flagged exactly where the discrepancies were. In my case, it turned out some of my bonus pay was categorized incorrectly. The taxr.ai system gave me a detailed report showing all the pre-tax deductions and explaining why my W2 box 1 amount was different from my gross salary. It also highlighted that my employer had miscategorized some income that should have been included. This saved me from filing incorrect information, and I had documentation to show my employer exactly what needed to be fixed. They were actually pretty appreciative since it helped them correct their payroll system too.

Just wanted to follow up - I tried taxr.ai after asking about it here, and wow, it actually worked amazingly well for my situation! I uploaded my bank statements, payment records and the 1099 forms I received, and it immediately identified two clients who underreported what they paid me by several thousand dollars. The detailed report broke down exactly where the discrepancies were, which made it super easy when I contacted these clients. One of them had accidentally submitted an early draft of my 1099 rather than the final version, and the other had missed including some December payments. Both agreed to submit corrected 1099s right away. The service also explained the tax implications of the missing income (including estimated self-employment tax), which helped me understand exactly what was at stake. Seriously saved me from what could have been a major headache down the road!

For anyone dealing with W2 issues like this, if your employer isn't helpful, you absolutely should contact the IRS - but good luck getting through to them! I spent THREE WEEKS trying to reach someone about a similar issue last year. After endless busy signals and disconnections, I found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c. They basically wait on hold with the IRS for you and call you when an actual human picks up. I was super skeptical, but I was desperate after so many failed attempts. I tried it, and they got me connected to an IRS agent within a couple hours. The agent walked me through filing Form 4852 (the substitute W2 form) and explained exactly what documentation I needed to keep in case of questions later. Completely solved my problem when my employer refused to fix their mistake.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway out of desperation because I'd been trying to reach the IRS for weeks about my missing refund. The service actually worked exactly as advertised. They took my callback info, and about 3 hours later (while I was grocery shopping), I got a call that an IRS agent was on the line. It was 100% a legitimate IRS employee who had access to my tax records and was able to tell me exactly why my refund was delayed. What really impressed me was that I didn't have to start over explaining my situation - I was connected directly to the right department. The agent confirmed my identity and then immediately helped resolve my issue. My refund was released within 48 hours after that call. I've spent literally days of my life on hold with the IRS over the years, so this was honestly life-changing. Consider me converted from biggest skeptic to biggest fan.

Just a quick thought - I'm surprised no one mentioned that the difference might be due to retirement contributions. If you're contributing to a 401k or similar plan, that money comes out pre-tax and wouldn't show up in Box 1 of your W2. For example, if your salary is $60,000 but you contribute $8,000 to your 401k, your W2 Box 1 would only show $52,000. This is totally normal and actually what should happen. Check Box 12 of your W2 - there should be a code D or similar with your retirement contributions. Does that amount explain the difference you're seeing?

I wonder if this is more common than we realize? My sister just texted me after I told her about this post, and she discovered her W2 has the same issue! Turns out her HSA contributions and healthcare premiums were the difference. Does anyone know if the "missing" money is reported somewhere else on the W2? Or is it just not reported to the IRS at all? I'm curious now about how all this works.