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Tax transcripts income not matching W2s

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Tax transcripts income not matching W2s

I'm due to close on November 6th and my LO informed me that the gross income on my 2014 transcripts don't match my W2s. I make approximately $49,000 and my transcripts show I made $39,000, exactly $10,000 less. That's an obvious mistake and I'm hoping it won't cost me my loan. I've already been conditionally approved, it's just this hiccup that's holding me up.

 

Now my question is, will this stop me from getting the loan? Is it okay to amend my taxes while in the mortgage application process? My LO said it won't stop me from getting the loan but it will need to be addressed. Not sure what she meant by that. Thanks for any input.

Message 1 of 8
7 REPLIES 7
Valued Contributor

Re: Tax transcripts income not matching W2s

Be aware that amended taxes can take between 8-12 weeks. I am no expert, but if the W2's dont match, this could be a sign of fraud according to Fannie Mae and Freddie Mac guidelines, not saying that you are doing anything fraudulent. 


FICO 8 Scores
TU 752- EQ 751- EX 745

Message 2 of 8
Senior Contributor

Re: Tax transcripts income not matching W2s


@BarackOdrama wrote:

I'm due to close on November 6th and my LO informed me that the gross income on my 2014 transcripts don't match my W2s. I make approximately $49,000 and my transcripts show I made $39,000, exactly $10,000 less. That's an obvious mistake and I'm hoping it won't cost me my loan. I've already been conditionally approved, it's just this hiccup that's holding me up.

 

Now my question is, will this stop me from getting the loan? Is it okay to amend my taxes while in the mortgage application process? My LO said it won't stop me from getting the loan but it will need to be addressed. Not sure what she meant by that. Thanks for any input.


So which is correct...the W2 amount or the amount on your filed returns? In either case, I recommend that you contact the IRS. Go to your local IRS office and meet with a customer service rept if you can. The correction has to be made through filing of amended returns.

 

Regarding your income on the W2, was all of it salary? Is any part of it overtime, bonus, etc.? The more that we know, the better we'll be able to help.

 

 

Message 3 of 8
Established Member

Re: Tax transcripts income not matching W2s

I work for the IRS. Don't waste your time going into an office. They can't fix the issue and any returns given to them take longer to process than the ones submitted to the source. The first thin to determine is what is incorrect, your w2 or 1040. If your 1040 is incorrect you will need to file a Form 1040-X. If the w2 is incorrect. You will need to contact your employer who issued the w2 to correct their information by way of a w2c that your employer will submit to the ssa. If the w2 listed too much, you will also receive a w2c and need to file a 1040x. The process takes a MINIMUM of 8 weeks to complete. Updating of w2's with the ssa takes MUCH longer.
Message 4 of 8

Re: Tax transcripts income not matching W2s

Thank you for the replies. My W2s are correct. The amount on the returns are incorrect. 

 

All of my income is salary. 

Message 5 of 8

Re: Tax transcripts income not matching W2s


@Sekonick wrote:
I work for the IRS. Don't waste your time going into an office. They can't fix the issue and any returns given to them take longer to process than the ones submitted to the source. The first thin to determine is what is incorrect, your w2 or 1040. If your 1040 is incorrect you will need to file a Form 1040-X. If the w2 is incorrect. You will need to contact your employer who issued the w2 to correct their information by way of a w2c that your employer will submit to the ssa. If the w2 listed too much, you will also receive a w2c and need to file a 1040x. The process takes a MINIMUM of 8 weeks to complete. Updating of w2's with the ssa takes MUCH longer.


I've read in the past of people amending their taxes and getting a stamped copy to show the lender. Is that not possible anymore?

Message 6 of 8
Super Contributor

Re: Tax transcripts income not matching W2s


@BarackOdrama wrote:

@Sekonick wrote:
I work for the IRS. Don't waste your time going into an office. They can't fix the issue and any returns given to them take longer to process than the ones submitted to the source. The first thin to determine is what is incorrect, your w2 or 1040. If your 1040 is incorrect you will need to file a Form 1040-X. If the w2 is incorrect. You will need to contact your employer who issued the w2 to correct their information by way of a w2c that your employer will submit to the ssa. If the w2 listed too much, you will also receive a w2c and need to file a 1040x. The process takes a MINIMUM of 8 weeks to complete. Updating of w2's with the ssa takes MUCH longer.


I've read in the past of people amending their taxes and getting a stamped copy to show the lender. Is that not possible anymore?


when i worked for a direct lender who could sell to fannie and retain servicing, we did that.

if we wanted to sell the loan, then the transcripts would have to be in the file.

 

Retired Lender
Message 7 of 8
Established Contributor

Re: Tax transcripts income not matching W2s


@BarackOdrama wrote:

I'm due to close on November 6th and my LO informed me that the gross income on my 2014 transcripts don't match my W2s. I make approximately $49,000 and my transcripts show I made $39,000, exactly $10,000 less. That's an obvious mistake and I'm hoping it won't cost me my loan. I've already been conditionally approved, it's just this hiccup that's holding me up.

 

Now my question is, will this stop me from getting the loan? Is it okay to amend my taxes while in the mortgage application process? My LO said it won't stop me from getting the loan but it will need to be addressed. Not sure what she meant by that. Thanks for any input.


a transcript basically recaps the return that you filed, right?  I mean, isn't that where the transcript information comes from, your tax return?

 

If so, and you entered $49,000 and submitted w2s that support this, then it would seem it's an error on the IRS's part.  You could provide a copy of your tax return that shows this and any amount that you either were refunded or paid, to which they could check that bottom figure too.

 

IDK, maybe I'm just not understanding.  Hope you get it all worked out in time. 



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