How to Amend 2007 W-2 with DFAS

[Blahndee]

What is the name of your state (only U.S. law)? Texas

My husband was deployed to Kuwait from April 2007 to April 2008. In October of 2007, he renegotiated a 4 year contract with the Navy in order to take advantage of increased bonuses. Even though he signed the contract in
2007, the bonus did not get deposited until the first week of January 2008 which pushed our income $48,000 higher than it should have been for tax year 2008. After a contract is signed, the money should be deposited in the tax year for which the bonus was negotiated, which in this case was 2007. The paperwork was delayed in getting processed until late December without our knowing. Because of paperwork delay, this extra deposit has pushed our taxes into the 33% bracket, and instead of a nice return this year, we will pay close to $10,000 in taxes. My question, Is there a way to amend a W-2 with DFAS? Any advice would be very much appreciated!What is the name of your state (only U.S. law)?

 

[LdiJ]

What is the name of your state (only U.S. law)? Texas

My husband was deployed to Kuwait from April 2007 to April 2008. In October of 2007, he renegotiated a 4 year contract with the Navy in order to take advantage of increased bonuses. Even though he signed the contract in
2007, the bonus did not get deposited until the first week of January 2008 which pushed our income $48,000 higher than it should have been for tax year 2008. After a contract is signed, the money should be deposited in the tax year for which the bonus was negotiated, which in this case was 2007. The paperwork was delayed in getting processed until late December without our knowing. Because of paperwork delay, this extra deposit has pushed our taxes into the 33% bracket, and instead of a nice return this year, we will pay close to $10,000 in taxes. My question, Is there a way to amend a W-2 with DFAS? Any advice would be very much appreciated!What is the name of your state (only U.S. law)?

It would be extremely complicated for any employer to change the year in which income was reported. I cannot imagine any employer agreeing to do so. Particularly when your husband did not have contructive receipt until January 08.

 

[tranquility]

I agree with LdiJ. You are a cash basis taxpayer. You did not have the cash until 2008. Not only would having the Navy amend your W-2 be a big hassle, I think the income is for 2008. You could try to file it in 2007 and put an explination on your return (Use the "please audit me" Form 8775.) for that and 2008, but I'm uncertain as to why you feel the money should be reported on the date of signing.

 

[Blahndee]

thank you

Thank you both for your prompt reply. It is very much appreciated.

Tranquility, in response to your statement,

but I'm uncertain as to why you feel the money should be reported on the date of signing.

I feel it is important for the money to be deposited in the tax year for which the contract was signed, not the date of signing. This was renegotiated in October and the fact that it took so long for the paperwork to be submitted is unacceptable. My husband has been in the military for 22 years and we have renegotiated many times. This has never happened before.

Thank you again for your advice.

 

[LdiJ]

Thank you both for your prompt reply. It is very much appreciated.

Tranquility, in response to your statement,

I feel it is important for the money to be deposited in the tax year for which the contract was signed, not the date of signing. This was renegotiated in October and the fact that it took so long for the paperwork to be submitted is unacceptable. My husband has been in the military for 22 years and we have renegotiated many times. This has never happened before.

Thank you again for your advice.

It honestly doesn't matter. Individuals are cash based taxpayers and constructive receipt didn't happen until January 2008.

 

[davew128]

I feel it is important for the money to be deposited in the tax year for which the contract was signed, not the date of signing.

Your problem is with the bureaucracy of the Navy's payment system, not the application of tax law. The W-2 shows exactly what it is supposed to. I would also question why you're asking this NOW when clearly you had to have known about it a year ago when the payment was deposited in 2008.