Ian Bryzek, CPA
Bonus or commission paid after death
Deferred bonuses and commissions can post long after the work was done.
Sales credits and bonus cycles often close on their own calendar. A payment after death still needs a source explanation for the tax file.
Post-death incentive pay should be tied to the employer's written description, not guessed from a bank memo.
What to keep with the file
Post-death incentive pay should be tied to the employer's written description, not guessed from a bank memo.
What to do next
Ask the employer which tax year and form will report the payment.
What to gather
- Bonus or commission statement
- Employer explanatory letter
- Payment confirmation
- Related W-2 or 1099 when issued
- Timeline of when the amount was earned versus paid
Who usually handles what
- Ian can organize the tax reporting question and the supporting records.
- The executor, trustee, or account custodian supplies records and confirms who has authority to act.
A practical next step
Ask the employer which tax year and form will report the payment.
Related guides
This is general tax information, not tax or legal advice. Outcomes depend on the documents, ownership, timing, and law that apply to the particular facts.