Yes, you are understanding correctly. You are not required to report income until you actually receive it. It is up to your employer to submit a corrected W-2. It's important that you have proof such as a copy of the check or check stub that shows the payment date. If the employer does not send the correction to the IRS then it will be up to you to prove it was issued in 2025, once the IRS indicates your forgot a W-2. This can take up to two years.
The IRS term is constructive receipt.
Constructive receipt. IRS Publication 538
Income is constructively received when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations.
Example.
You are a calendar year taxpayer. Your bank credited, and made available, interest to your bank account in December 2021. You did not withdraw it or enter it into your books until 2022. You must include the amount in gross income for 2021, the year you constructively received the interest income.
If the employer will not send a corrected W-2 (W-2c), you can file your return without the W-2, being ready to prove you didn't receive it and it was dated in 2025. Or file it with your tax return for 2024.
@ainsworthk
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