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Author: cactusadam Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Necessity of W-2? Date: 1/29/2002 9:32 AM
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Greetings,
In the last week of 2001, my wife had a working interview with a potential employer, for which she was paid $120. We have not received a W-2 for this payment and for some reason I suspect we won't. Also, it would be kind of awkward for her to call and ask if he's sending the form. My question is, can I just add this in with my reportable income and include the pay stub as proof?

One other question: I received a 1099 for state retirement plan contributions that I rolled into a rollover IRA when changing jobs. The taxable income is $0. Do I need to send this in with my tax forms?
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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 57810 of 121061
Subject: Re: Necessity of W-2? Date: 1/29/2002 10:07 AM
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The "correct" way to report the working interview income is to list the $120 on line 21 other income. Your wife can deduct any expenses related to this income (travel?) on Sch A as miscellaneous itemized deductions subject to 2% of AGI. Unless you already have a lot of these type of deductions, she won't get any additional benefit.

You only submit copies of Form 1099 when they list tax withholdings. Otherwise just make sure the numbers are entered in the appropriate places on your return. (Gross rollover amount line 16a, $0 line 16b).

Ira

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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 57815 of 121061
Subject: Re: Necessity of W-2? Date: 1/29/2002 11:24 AM
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In the last week of 2001, my wife had a working interview with a potential employer, for which she was paid $120. We have not received a W-2 for this payment and for some reason I suspect we won't. Also, it would be kind of awkward for her to call and ask if he's sending the form. My question is, can I just add this in with my reportable income and include the pay stub as proof?

Does the pay stub show the usual employee withholdings (Social Security, medicare, federal income tax, etc)? If so, I would expect to receive a W2 reporting the earnings. Since they are not required to be sent to employees until Jan 31, it is not unusual for your wife to be missing hers at this point. Give them a few more days - they might mail it on the 31st and it would take a couple of day to get through the post office to you.

If there were no withholdings, then they treated your wife as an independent contractor. Normally this would be reported on a 1099. Since the filing threshold for 1099's is $600, she might not get one. In that case, I'd report the income as miscellaneous income on your tax return.

If I was a gambling man, I'd be betting on the first situation rather than the second. Given the circumstances, I think your wife would be considered an employee, even if the employment lasted only through a working interview.

I see no reason to feel awkward about asking for a W2. It's their responsibility to report the income and deliver the W2. If they haven't, there's no reason for you to feel funny about asking them to fulfill their responsibility.

One final thought - when was the check dated? If they didn't pay her until 2002, the income is 2002 income, not 2001. Then you wouldn't be receiving anything until this time next year.

--Peter

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