1040 OF 2019 AMENDED

[yijian]

Before Mar. 2020,  I worked at a restaurant. My boss didn’t pay me the salary of 2019.

 At Jan. 2020, they gave me

W-2 , but I did not receive  the paycheck up to Mar. 2020.  In Feb. 2020, I filled in 1040 Form, and paid the tax to IRS according to W-2.  In May, 2020, the restaurant filed for bankruptcy, the boss could not pay me the payroll of 2019 anymore. In 2022, the court has finished this restaurant bankruptcy case, and I received the payroll of 2019. My question is I have paid all the federal income tax and Oregon state tax of 2019. My 2019 payroll received in 2022 (last year) have paid the tax needed. That is to say I did not need to pay the tax of 2019 again (twice) . Now I have received the payroll of 2019, how I can report it in the 1040 form of 2022 or may I need to fill form 1040X ? 

[RSUMan]

You are a cash basis taxpayer.  Ideally, you pay tax on amounts you actually received in the tax year.

You do not pay tax on the same income twice.

Were you issued a Form 1099 or other document in connection with the completion of the bankruptcy process?

It sound to me like you were a creditor in bankruptcy and the amount you received was back wages that you had already recognized on your 2019 tax return.

[rschule1 · Accepted solution]

Hi There:

This appears to be an issue of an employer issuing an incorrect W2 and then refusing to correct it. In such cases the IRS might be able to help. Please Call the IRS toll free at 800-829-1040 or make an appointment to visit an IRS Taxpayer Assistance Center (TAC). The IRS will send your employer a letter requesting that they furnish you a corrected Form W-2 within ten days.

[yijian]

Thank you for your reply!  My further question is " I did not received 1099, I just received the check from the 

bankruptcy court, how can I do? 

[RSUMan · Accepted solution]

This confirms my suspicion.

You were a creditor in bankruptcy.  The bankruptcy estate was found to owe you a debt.

You received a check for that debt; receiving the payment of a debt is not income.

My understanding of your fact pattern is you already recognized this income in 2019 when you filed the tax return.

The check you received from the bankruptcy appears to be irrelevant to your 2022 tax return.