Generally, income is reported on your tax return when you receive it (which is called the cash method of accounting). You will report the income on your tax return when you receive the W-2 for your wages. Unless you specifically report your income under the accrual method, you will report the income on your 2023 tax return. The retroactive pay should be included on your W2 for next year.
For more information, please review the TurboTax articles What is the cash method of accounting? And What is the accrual method of accounting?
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