BettieG
Employee Tax Expert

Get your taxes done using TurboTax

Thanks for your question @jryanruss23!  Unfortunately, accrued vacation pay will be taxed as ordinary income.  It may be reported to you as part of your W-2 or it may be reported to you separately by your employer on a Form 1099-MISC.  Either way, though, it's taxed as ordinary income unhappily.

 

I hope this is helpful!

 

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