young, disabled TP

[dktax]

She has AGI of only $4200. SS benefits of $8500. My question regards earnings of apprx 1200 not yet included in AGI. She was employed and taxes were withheld but she has no proof. How do I report the income? My concern is the making work pay credit and EIC.

[KBTS]

Are you saying she should have received a W2 and did not? If so, here is the instruction page from the IRS website for that:

http://www.irs.gov/newsroom/article/0,,id=106470,00.html

If that is not what you needed, post more information and I am sure someone here can help.

[dktax]

Yes, I am

but she has no paystubs and no other proof and therefore cannot file form 4852. So how do I report the income? Just on line 21? Sch C? But I am also concerned that it will increase making work pay and EIC credits.

[erchess]

taxpayer's best recollection

will work as the stated source of information for Sub W2 as long as you also explain why she was not able to get a W-2. Did the company go under or refuse her another copy or what? Now she's only going to get credit for withholding that is reflected on the company's payroll reports that were turned in. I expect the same goes for income for purposes of credits. But it sure doesn't go that way for purposes of income tax - and if her income were high enough that she owed tax, they'd be quick enough to penalize her for leaving this money off.

[dktax]

Thank you but

it looks as though no payroll reports have ever been filed. She worked in an ins office and was paid by two agents. There is a W-2 from one of the agents but not from the other. The income will not result in any tax owed but it does affect the credits.

[taxmandan]

Since there is no tax result just a benefit for the TP in additional credits I would expect TP to make some effort to get the W-2.

If I were going to include the unsubstantiated income on their return, it would only be if the TP filed a complaint with the state employment tax office & labor board against the insurance agent. This would give some weight to the idea that there was some income beyond just the memory of the TP. Our state is very aggressive at pursuing such complaints and a W-2 might suddenly appear in TP's mailbox. Sort of like an insurance company wanting a police report of a theft to verify the loss of property, not just the word of the person filing a claim.