Received w-2 for deceased spouse 3 years after her death--how to report?

Do I ignore it, since it's under her now-defunct Social Security Number? Pretend it's under my Social Security Number and include it in my own income? Or something else? She's no longer listed on my return, so I can't figure out how to process it. Jim Beaver

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Reply to
Jim Beaver
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That's a good idea. Find out what it's for as a starting point.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

If she actually had that income and the year is 2004 or 2005 (which doesn't seem likely based on your facts) then the return for that year should be amended. If she didn't have the income then YOU have nothing on your tax return. If it was to report a very late payment of money owed your late wife from before her death, then there may be an estate income tax return to prepare and file but the income, I believe, still does not go on your tax return. It would be simpler if it did. What other information do you have about this W-2, the employer or the timing of any actual payment by the employer?

Reply to
Bill Brown

"Jim Beaver" wrote

Was income received during the year from that employer? If so, and you received that income, then it's reported on yoru return regardless of what the W-2 says. If you didn't receive any type of income from that employer, then don't do anything with it.

-- Paul A. Thomas, CPA Athens, Georgia

Reply to
Paul Thomas, CPA

Several questions..... Did your late wife actually work for this employer at any time? Did you actually receive the income reported on the W-2? Could someone have stolen her identity or could this be a clerical error? Something like this happened to one of my friend's clients. Her late husband failed to pay back a 401k loan and got a distribution 1099R the year after he died. His wife tried to include the income on her single return but the IRS forced her to file a 1041 for the estate claiming income in respect of a decedent. As a result she reported a little less on her personal return. Look into these issues. If you ask the IRS, they will probably tell you to file a joint return. Apparently for them only taxes are certain. Linda Dorfmont E.A., CFP, CSA

Reply to
DORFMONT

I should have explained. The income was for 2006. It was for residual payments. My wife was an actress. Under normal circumstances, an actor's residual payments are converted into payments (and W-2s) for the surviving spouse or other beneficiary. That's what happened with the majority of her residual payments. I get the check and the W-2 in my name. But although I don't recall the specific checks being in her name, clearly the W-2 from this company had not caught the change. So my own SSN and name are nowhere to be found on the W-2. It makes sense though, that if I got the income, I should consider it my own, regardless of the name on the W-2. Thanks.

Jim Beaver

Reply to
Jim Beaver

Well, the income is taxable to you (or your wife's estate) but it should not have been reported on a W-2 since neither you nor your wife's estate was an employee of that company in 2006. Someone should have informed the payor that your wife is now deceased and that you have inherited the rights to her residual payments. They should have issued you a 1099 and NOT one that indicated the amount was nonemployee compensation. The main practical problem is they probably erroneously withheld FICA and Medicare taxes from the checks they were treating as salaries paid.

Reply to
Bill Brown

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