Why does the iPhone 5c display wrong time?

My iphone 5c currently started displaying the wrong time. I hadnt updated the software yet and thought this was the source of the issue. After the update was complete the time was still incorrect. I have tried syncing my phone with itunes, deleting world clocks, doing hard resets, even wiped the phone back to factory settings. Nothing has worked

Ok, so this is a two fold problem.  One just like brad805 pointed out you have to have Settings App > General > Date & Time > if Set Automatically is OFF > ON, if it was ON > OFF > Set Date & Time yourself (but when you bring up this screen to manually set time there is this little reminder about having location services set to ON for it to change time zones correctly).  So, leave it  Settings App > General > Date & Time > if Set Automatically is OFF > ON, now go back to Settings App>Privacy>Location Services>ON (if off).  Once I did this (which mine was off) and I went back to Date & Time instead of it thinking I was in New York, it now showed a very complicated America/Indiana/Indiana... (I suspect this is due to the fact that Indiana has 3 time zones EST, EDT (for the counties that observe) and CDT).  Now time is running automatic and smoothly.  This was on an iPhone 5c 16 GB running 7.1.2 on Verizon.  I hope this helps.
On a side note, its sad that techs in the store cannot read the screen and Apples little notes on it to help you out.

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