ColeenD3
Expert Alumni

Get your taxes done using TurboTax

It is difficult in a tax program to explain reporting document errors. 

 

One method might be to include the amount on a Schedule C and then expense it to "Deceased employee's wages". Include the amount in Other Income and tag it with the same explanation.

 

It may work by doing this. You may get a call from IRS. If you do, you can explain the circumstances at that time.