i have a client whose spouse pass away in 2020 and she filed 2020 as surviving spouse. she has come to me to do her 2021 tax return and has a w-2 in his name and ss#. since she has to file single how do i handle that w-2.
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Does she have a dependent child?
She should have filed married filing jointly for 2020.Uncle Sam, CPA, EA. ARA, NTPI Fellow -
Did you mean to say that she filed the 2020 return by signing as surviving spouse but actually did file a joint return ?
Not sure how someone that dies in 2020 could have a 2021 W-2 form.
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"Not sure how someone that dies in 2020 could have a 2021 W-2 form."
Could be back pay, could be a bonus that was earned in the prior year, many possibilities. I can easily imagine the payroll accountant on the other side of the reporting, just issuing the W-2 to get it off their books.
"since she has to file single how do i handle that w-2."
Instead of asking questions, I'll try to answer! One answer is, you don't have to handle it, and I don't see any reason why it would be included on your client's tax return for the year. I think the executor or personal representative of the decedent may have something to do, and it may be her, but again it's not something for her 1040 tax return.
As a practical matter, I'd start with assessing the facts. You have a W-2, but was the net pay (with required paystub) ever received? How much? Was there income tax withholding, fed or state, and again how much? The amounts may be too small to bother with. But if there is significant withholding to claim as a refund, I think the correct approach is to file a Form 1041. Maybe there was already a trust in place? I'll defer at this point to anyone with more trust/estate expertise than me.
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