Need some guidance on how to handle this. Husband passed away in 2015. We filed a MJ return that year. In 2016, wife continues to periodically receive income from husband's employer reported in the form of a W-2 with husband's SS#. The income is related to some bonuses for past performance. Rather than file a 1041 to report income and allow to flow to wife in the form of a K-1, can we allow the IRD to be recognized directly on the 1040 with an explanation? The estate was small with the wife as the only beneficiary.
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Did the income not revert to her on his death? Why hasn't the wife contacted the employer and ask if and how this can be changed to her SSN and, perhaps, on a 1099 if possible. Someone must know how to legally convert the funds to her directly.
If and when you get an answer let me know. I am curious.Believe nothing you have not personally researched and verified. -
Wages, including bonuses, commissions, accrued vacation and accumulated sick pay, paid in the year AFTER an employee's death are not to be reported on a W-2, but on a form 1099-MISC instead. Furthermore, they are not subject to social security or Medicare taxes.
The employer should be contacted and asked to "undo" the wrongly issued W-2 and issue a 1099-MISC in its place using the wife's SSN.Roland Slugg
"I do what I can."Comment
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Thanks for the guidance. Will follow up to see if we can get the employer to re-issue.Comment
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