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Posted by Bill Brown on April 30, 2007, 11:41 am
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> I should have explained. The income was for 2006. It was
> for residual payments. My wife was an actress. Under
> normal circumstances, an actor's residual payments are
> converted into payments (and W-2s) for the surviving spouse
> or other beneficiary. That's what happened with the
> majority of her residual payments. I get the check and the
> W-2 in my name. But although I don't recall the specific
> checks being in her name, clearly the W-2 from this company
> had not caught the change. So my own SSN and name are
> nowhere to be found on the W-2.
>
> It makes sense though, that if I got the income, I should
> consider it my own, regardless of the name on the W-2.
Well, the income is taxable to you (or your wife's estate)
but it should not have been reported on a W-2 since neither
you nor your wife's estate was an employee of that company
in 2006. Someone should have informed the payor that your
wife is now deceased and that you have inherited the rights
to her residual payments. They should have issued you a 1099
and NOT one that indicated the amount was nonemployee
compensation. The main practical problem is they probably
erroneously withheld FICA and Medicare taxes from the checks
they were treating as salaries paid.
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