Sorry, I am still looking at Pub 559 pages 14 & 15 and it seems to say that Federal tax should NOT have been withheld from my spouses final paycheck received in the year of their death, but after the date of death. It says it should have been reported on a W-2 (if I'm reading it right), but only Social Security and Medicare should have been withheld, not Federal taxes. And, the NET Income for 2022 should have been reported on a 1099-MISC. That is what one of the links you provided said, too. I've included the quote from Publication 559 below.
I have no idea if that would be the case for Arkansas, too. Please tell me if I am reading it incorrectly. If so, then it seems I need to request a refund for the taxes withheld and file a change to my 2022 taxes. But, it's not clear to me if the change in forms makes a difference on how much tax I would owe for 2022, or for 2023.
"Wages. The entire amount of wages or other employee compensation earned by the decedent but unpaid at the time of death is income in respect of a decedent. The income isn't reduced by any amounts withheld by the employer. If the income is $600 or more, the employer should report it in box 3 of Form 1099-MISC, Miscellaneous Income, and give the recipient a copy of the form or a similar statement.
Wages paid as income in respect of a decedent aren't subject to federal income tax withholding. However, if paid during the calendar year of death, they are subject to withholding for social security and Medicare taxes. These taxes should be included on the decedent's Form W-2 along with the taxes withheld before death. These wages aren't included in box 1 of Form W-2.
Wages paid as income in respect of a decedent after the year of death aren’t generally subject to withholding
for any federal taxes."
