Taxpayer died in 2020 but received a 2021 W-2

[cpr1955]

I have a client where the husband died in 2020 but received a 2021 W-2 for a bonus payment. How would I file that?

[Lee B]

The rules that apply to this situation require the employer to issue a 1099 not a W 2.

 

[Abby Normal]

Is the estate still open? Who got the money? If the surviving spouse got the money, If the employer can't or won't void that bonus check and process it as a 1099, then I'd just enter the W2 on the surviving spouse's return, or run it through the estate, if it's still open.

[Lee B]

In addition the employer should refund the FICA Taxes that were withheld in error.

[cpr1955]

Thanks to both of you