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W-2 for Retired Taxpayer

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    W-2 for Retired Taxpayer

    New client who is 80 years old and has been retired for almost 20 years is receiving a W-2 (and has been for years) rather than a 1099-R. What circumstance would generate a W-2 for a retired person who is no longer working?

    Peggy Sioux

    #2
    Who issued the W-2? Does he get it yearly? TP should be able to answer your question.
    Believe nothing you have not personally researched and verified.

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      #3
      Originally posted by peggysioux View Post
      New client who is 80 years old and has been retired for almost 20 years is receiving a W-2 (and has been for years) rather than a 1099-R. What circumstance would generate a W-2 for a retired person who is no longer working?

      Peggy Sioux
      Occasionally I run into this and it is usually a wage adjustment that is back dated either due to an audit or other compliance reasons. It more likely is back pay from years back. My son received a W2 for 3 years from an employer that he worked almost 5 years back and it was a wage adjustment after union sued the employer!

      But if your client has been receiving for years, make sure he is not doing any part time work or collecting on some deferred comp.
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

      Comment


        #4
        Originally posted by peggysioux View Post
        New client who is 80 years old and has been retired for almost 20 years is receiving a W-2 (and has been for years) rather than a 1099-R. What circumstance would generate a W-2 for a retired person who is no longer working?

        Peggy Sioux
        I believe there are situation of continued healthcare benefits that are reported on W2. I have one w/ $300 every year.

        Comment


          #5
          How would a....

          Originally posted by peggysioux View Post
          New client who is 80 years old and has been retired for almost 20 years is receiving a W-2 (and has been for years) rather than a 1099-R. What circumstance would generate a W-2 for a retired person who is no longer working?

          Peggy Sioux
          reply poster know why your client received a W-2? You would receive guesses.

          As reply poster TAXEA suggested, did you ask the client? Think that would be the best way to find where the answer would be.
          Last edited by TAXNJ; 04-04-2018, 10:19 AM.
          Always cite your source for support to defend your opinion

          Comment


            #6
            Originally posted by kathyc2 View Post
            I believe there are situation of continued healthcare benefits that are reported on W2. I have one w/ $300 every year.
            This could be group term life insurance in excess of $50K provided to retirees. Typically there would be entries for Code M & N in Box 12.
            "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

            Comment


              #7
              Is it only in Box 1, or is it also in Box 3 and 5?

              Any codes in Box 12? If so, which codes?

              Comment


                #8
                There is a type of pension plan that is only allowed for governmental agencies, etc. that is an unfunded pension plan. Those plans do report the payments on a W-2 but are treated as pensions. They are very rare now, but I had a couple of retired police officers several years ago who received these pensions. Your client would know if this is the case.

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