W2 dished to the wrong spouse

[Possi]

I just noticed that the wrong spouse was credited with a W2 last year on the tax return. A question regarding the hsa came up, and that's when I noticed it. The IRS gets the actual W2, so I don't think it matters on the tax return, but thought I'd ask. No tax credits or ripple effects happen IN the return, so there's no reason to amend it. I just want to be sure the right person gets credit at the IRS.

edit; Welp, I was so wrong. By marking the wrong spouse on that W2, they received overpaid SS withholding, and now they owe money back to the IRS. Like... $3k. I'm gonna be sick. 

[Pacun]

You need to amend... sometimes you sleep better when you don't go back and check.  You made two mistakes at least:
1.- You didn't click "spouse" when entering the w-2 (which is very easy mistake)
2.- When you printed the finished 1040, you didn't look carefully on the payments and credits. Normally, at this level is when I notice I made a mistake.
3.- Last year comparison is a very good tool and I always take a look and compare.

I made the same mistake but it was on an extension. I put both salaries on the husband so 100K from wife's W-2 and husbands K1 for 90K, was put together. SS was not calculated on the full 90K and that year they owed when filing in October. Luckily for me, he is my friend and I just told him the mistake I made.

[Pacun]

I want to add, that VA and DC have a nice place where you can see how much each made and sometimes, I have found that the wife doesn't have any income and then I go back to the W-2 and check mark "spouse".

[Possi]

1 hour ago, Pacun said:

You need to amend... sometimes you sleep better when you don't go back and check.  You made two mistakes at least:
1.- You didn't click "spouse" when entering the w-2 (which is very easy mistake)
2.- When you printed the finished 1040, you didn't look carefully on the payments and credits. Normally, at this level is when I notice I made a mistake.
3.- Last year comparison is a very good tool and I always take a look and compare.

I made the same mistake but it was on an extension. I put both salaries on the husband so 100K from wife's W-2 and husbands K1 for 90K, was put together. SS was not calculated on the full 90K and that year they owed when filing in October. Luckily for me, he is my friend and I just told him the mistake I made.

I do use the comparison, and I'm sure I looked at it. They had 3 W2's and I thought it was his. I really did check it, and thought it was his. I always compare year to year.

Oh well, clean it up, and move on. Like you said, it's an easy mistake to make. When you are doing the volume I do, there will be an error or two. But no error is ok with me. None. I need to pull myself out of this funk. I can't let this defeat me today. Thanks for the input. I appreciate it. 

[Abby Normal]

This is the kind of thing that keeps me up at night, and the reason I like to check and question every line on a return. Yet, I've still done the exact same thing and even had Sch C going to the wrong spouse.

Clients usually appreciate when we admit a mistake and take responsibility for it, and get it fixed for them.

[Lion EA]

You want to match the FICA/Medicare to the right spouse, too. But yes, we all make mistakes under this kind of deadline pressure. There was only one perfect person, and we crucified him! I wake up in a panic trying to remember if I did this or checked that, and get up and turn on my computer. But in my sleepy state, I probably don't do any better than I would waiting until the morning. Except that I wouldn't fall back asleep and would lay there with a knot in my stomach. (I guess a home office does save me time.)  And then, I'm even more sleepy due to that middle-of-the-night working or due to that middle-of-the-night worrying, either way. It's only February, and I'm already sleep deprived. Hang in there.  You're doing fine.

[BulldogTom]

4 hours ago, Possi said:

I just noticed that the wrong spouse was credited with a W2 last year on the tax return. A question regarding the hsa came up, and that's when I noticed it. The IRS gets the actual W2, so I don't think it matters on the tax return, but thought I'd ask. No tax credits or ripple effects happen IN the return, so there's no reason to amend it. I just want to be sure the right person gets credit at the IRS.

edit; Welp, I was so wrong. By marking the wrong spouse on that W2, they received overpaid SS withholding, and now they owe money back to the IRS. Like... $3k. I'm gonna be sick. 

OMG!   You are not perfect?  My world just shattered.   Take a look at my thread last year where I missed a quarter million dollar sale of stock on a client's return.    When you get to my level of screw ups, I will buy you a drink and we can commiserate together.  And I think you have 3 times the number of clients that I do.   

If we are keeping stats....your success rate puts you in the Hall of Fame.   Fix it and move on.   $h1t happens.

Tom
Modesto, CA

[Medlin Software, Dennis]

For me, black/white mistakes are no worry, since there is a black/white fix.  Maybe they go down hard, but they are not worrisome.  I have made enough of those to tire of beating myself up (unless it was a repeat).

[Margaret CPA in OH]

Okay, I am in this group, too. In comparing last year's personal return for married partners, checking basis, I noticed that I correctly entered the "-" for the loss on one K-1 entry but not on the second.  So, my error, amendment free.  The only good thing is that they will be getting a substantial refund as the number was a good size so now doubled in their favor.  Unfortunately they had to fork over bucks last year. 

Nope, not perfect either, so you have much company, Possi!

[jasdlm]

3 hours ago, Possi said:

I do use the comparison, and I'm sure I looked at it. They had 3 W2's and I thought it was his. I really did check it, and thought it was his. I always compare year to year.

Oh well, clean it up, and move on. Like you said, it's an easy mistake to make. When you are doing the volume I do, there will be an error or two. But no error is ok with me. None. I need to pull myself out of this funk. I can't let this defeat me today. Thanks for the input. I appreciate it. 

On a return last year for long-term clients, I missed the fact that they did not give me his W2.  She had changed jobs, and the income was less, (yes, I used the comparison, so don't even go there) but I knew she was unemployed for a period of time, and he had failed to print the document (which wasn't mailed, supposedly), and I gave them the return, they signed, I filed --- fast forward to November and IRS and State want $$$ and not an insignificant amount because it messed with credits, bracket, phaseouts, etc.  Of COURSE I knew that he had a job.

I amended, got checks from them for the tax, mailed separate checks from my account for interest/penalties, told them I was sorry, and moved on.  Most clients will give you grace when you admit the error readily and acknowledge being human.  It is no additional cost to them than it would have been originally without the mistake if you pay the penalty/interest, so they actually got to keep their money a little longer!

Love ya, Possi!  You 'da bomb!

[Abby Normal]

1 hour ago, jasdlm said:

missed the fact that they did not give me his W2

This is why I like to always view the Detail tab for W2s and 1099Rs. It's easy to see if one was missed. For interest, dividends and capital gains, I only input on the Detail tab. It's like working in a spreadsheet. I'll sometimes enter W2s and 1099s in the Detail tab too. I find it easier to hit the right arrow than to click next. It's also easier to copy/paste names and EINs. It's also easier to check all the EINs if they have several from the same payer.

Tip: Turn off calculations in Detail tab. Setting is in Preferences.

[Catherine]

Gee, here I thought I was the only one to occasionally attribute something to the wrong spouse, or leave something out! (not)  I even build in a three-day window between completing a return and reviewing it before printing; I've found that if I review too soon, I see what I *expect* to see, not what's there.  Still I occasionally miss something.

One year, forgot the clients' mortgage interest (or was it real estate taxes... either way, they paid the two separately and I forgot one of them).  Of course, those amounts were not IN the papers the clients sent me, but it was still my fault.  Yes, it was - because I *allowed* them to rush me (they wanted to leave for vacation and file before leaving) so I missed it totally.  The difference, months later when we amended?  $74 refund, federal only.  And they were so ticked I lost them as clients.  Considering how ticked (and nasty) they were and how hard they had pushed me to rush to finish, they left about a millisecond before I would have fired their behinds.

Go easy on yourself, Possi!

[Pacun]

11 hours ago, Abby Normal said:

This is the kind of thing that keeps me up at night, and the reason I like to check and question every line on a return. Yet, I've still done the exact same thing and even had Sch C going to the wrong spouse.

Clients usually appreciate when we admit a mistake and take responsibility for it, and get it fixed for them.

I have done that. The last time, I didn't realize until the wife was buying real estate and the schedule C went to her husband so the SSA didn't have any income for her. Luckily for me, they made about 60K together and they didn't owe any extra when I amended.

[Possi]

Well, let me wrap up this poop-show for y'all. 

Try not to laugh. 

While I am having my "come to Jesus" with my clients, and they are giving me grace and love, we are discussing 2 years of returns and withholding on W2's that are whacked, and my computer freezes. They are talking and I'm trying to talk to them and I realize it's my mouse. I change batteries and still nothing. I grab another mouse and it works.

Now, my keyboard isn't working. I change batteries (we are still talking and they don't have a clue what I'm going through) when I spy battery "ash" in the keyboard battery holder. This pack of batteries is old. Ancient, in fact. I toss them all and replace with fresh. My world is right again. 

It felt like a very bad "I Love Lucy" episode! 

by the way, I use the wireless keyboard and mouse because I have a kangaroo desktop that rises, so they can't be wired. I do keep tons of batteries, I just need to stock them FIFO! 

So, today I am amending and writing a fat check. They'll pay me back eventually. 

Thanks for all your kind comments. 

[Lion EA]

But did you stuff the chocolates in your mouth and shirt?! Hopefully, NOT the batteries.

[Possi]

2 hours ago, Lion EA said:

But did you stuff the chocolates in your mouth and shirt?! Hopefully, NOT the batteries.

It was THAT BAD! LOL