W2 from work done in a prior year

[soberjack17]

Hello all,

Sometime last year (2020) I received a letter in the mail about a job that I did in 2015 delivering phone books.  The letter stated something to the effect of, the company was caught underpaying its independent contractors.  So I naturally said, hey free money sure I'll take it.  So I did what the letter told me to do, and a month or two later I received a check for $58.  I was pleasantly surprised when it showed up.

Two days ago I received a W2 from that company stating I made $58 in 2020.  So the ultimate questions is: Do I have to claim this on my taxes?  I ask because the work was done in 2015 so do I have to report it in 2020?  Also, I thought that if you made less than $xxx.xx (might be $600), there was no requirement to send a W2.  Little confused on what to do with it, I believe it shouldn't have to be reported but also don't want to throw a red flag for IRS to audit me.  

Thanks for any advice in advance.

Jack

[MaryK4 · Accepted solution]

Yes, you will want to include the W2 on the 2020 even though you di the work in 2015.  Income is reported in the tax year it is received. The $600 limit is for the 1099-MISC, not the W2.

[soberjack17]

So then my next question would be: will this affect my eligibility for PUA assistance?  Might be called something else this year but I received unemployment for self emplyoment, and there are going to grant like 13 more weeks for this year. Thanks for your help.

Jack

[AmyC · Accepted solution]

You have the letter as proof that the income was not related to COVID. While $58 seems pretty negligible in the scope of things, you are right to wonder. The unemployment should be based on your last job. If the $58 comes up, I would argue the point that it was from 2015 and not related to your 2020 job that was lost.