My company will issue biweekly direct deposit paychecks on 1/1/21, but because of the holiday the money will actually hit my checking account a day early on 12/31/20. The pay stub I receive will be dated 1/1/21 even though the money credits to the account the day before.
The IRS says that income is "constructively received" when it's credited to an account or made available without restriction, which in this case will be 12/31/20. Will this rule hold true, and the income be considered earned in 2020, with the date in the pay stub showing as 1/1/21?
