W-2 for Retired Taxpayer

[peggysioux]

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

[taxea]

Who issued the W-2? Does he get it yearly? TP should be able to answer your question.

[ATSMAN]

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.

[kathyc2]

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.

[TAXNJ]

How would a....

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.

[Rapid Robert]

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.

[TaxGuyBill]

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

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

[TaxmannEA]

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.