1099 issued with estate as recipient's name

[Bonnie]

Filing a return MFJ for young lady whose husband passed away suddenly in 2015 and the company he was working for at the time issued him a 1099 MISC with other income in box 3 of 43,132. Information she is giving me is this is incentive bonuses he qualified for at the time of his death. And they issued stock for this amount. Recipient's name says Estate of John Doe----, with John's SS number on it. Does this income go on personal return she if filing or should there be an estate return and this income reported on it? I've never dealt with anything like this

[mastertaxguy]

W-2 for deceased taxpayer....

Perhaps the following will be of help in understanding what is going on.

From IRS instructions for form W-2.


Deceased employee's wages. If an employee dies
during the year, you must report the accrued wages,
vacation pay, and other compensation paid after the date
of death. Also report wages that were available to the
employee while he or she was alive, regardless of
whether they actually were in the possession of the
employee, as well as any other regular wage payment,
even if you may have to reissue the payment in the name
of the estate or beneficiary.
If you made the payment after the employee's death
but in the same year the employee died, you must
withhold social security and Medicare taxes on the
payment and report the payment on the employee's Form
W-2 only as social security and Medicare wages to ensure
proper social security and Medicare credit is received. On
the employee's Form W-2, show the payment as social
security wages (box 3) and Medicare wages and tips
(box 5) and the social security and Medicare taxes
withheld in boxes 4 and 6. Do not show the payment in
box 1.
If you made the payment after the year of death, do not
report it on Form W-2, and do not withhold social security
and Medicare taxes.
Whether the payment is made in the year of death or
after the year of death, you also must report it in box 3 of
Form 1099-MISC, Miscellaneous Income, for the payment
to the estate or beneficiary. Use the name and taxpayer
identification number (TIN) of the payment recipient on
Form 1099-MISC. However, if the payment is a
reissuance of wages that were constructively received by
the deceased individual while he or she was still alive, do
not report it on Form 1099-MISC.