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Level 2
posted Feb 15, 2021 12:36:49 PM

I received 2020 W2 from my previous employer even though I terminated my employment in 2019 and didn't work there in 2020. Anyone on the same boat ?

Wondering why I received W2 form (with some income) from my previous employer even though I didn't work there in 2020.

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6 Replies
Level 15
Feb 15, 2021 12:39:59 PM

Did you receive any payment from them in 2020, perhaps a final paycheck, severance, accrued vacation, or anything like that? Anything that they paid you in 2020 has to be reported on a 2020 W-2, even if it's for work that you did in 2019.

 

Level 2
Feb 15, 2021 12:53:33 PM

Hi rjs. I did not received anything from them in 2020. I did go through my bank statements to be sure. 

I terminated my employment in 2019 November and filed my 2019 taxes on time. 

 

I did sell few RSU's and ESPP stocks in 2020. That is reported in 1099B form though. So, I am clueless why I got W2 with $3k worth of wages on it. 

Level 2
Feb 15, 2021 1:18:41 PM

I am wondering if it could be ESPP Qualifying disposition reported as Compensation Income on W2.

Would 1099B have this information? or would it just have capital gains ?  

Level 15
Feb 15, 2021 1:28:19 PM

The W-2 is for the RSUs or the ESPP stock, or both. I'm not familiar enough with those to explain all the details. RSUs are reported on a W-2 when the shares are delivered to you, and on a 1099-B when you sell them. Sale of ESPP shares is also reported on a W-2. So your W-2 might combine both of them, depending on the timing. You could ask the employer to explain the amount on the W-2. Maybe someone else here in the TurboTax community who knows more about it will add some details.

 

Level 2
Feb 15, 2021 1:31:58 PM

Thank you rjs.

 

Let me get in touch with my previous employer. Meanwhile, if anyone else can throw some light on this, it would be helpful. 

Level 2
Feb 15, 2021 5:06:07 PM

I did the math and it seems like the wages reported are because I sold ESSP stocks in 2020.  My previous employer has reported Adjusted amount (the tax I owe for getting ESPP). So, all I need to do now is include this W2 along with 1099B form (with adjusted cost basis). This is take care of tax for both bargain element and capital gains.

 

Thank you for looking into this.