1099 a dead employee?

4 Replies

I had paid a casual worker approximately 1000 half way through the year when in July he died of a Heroin overdose. He was not married and was living with his elderly mother. He has no estate. If I file a 1099 on him will his mother be responsible to pay taxes on it? I don't want to create any additional burden for her.
No it won't effect her at all. If he has an estate it would owe any tax obligation. But if he died of an overdose I doubt he has an estate so the tax liability dies with him
Do what you are obligated to do. The tax code is what it is. Good luck.

Thanks guys. I will file the appropriate paperwork. 

If this person was an employee, then you have to issue a W-2.  1099 is for an independent contractor.   Your first step is to determine whether this person was actually an employee or an independent contractor.  There are IRS guidelines to help you make this determination.  The previous responses to your question addressed the ultimate tax liability no matter whether you issue a W-2 or a 1099.  Your description of the worker as an "employee" is why I raise this caution.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here