I plan to retire the end of 2023. I will have 30 days of unused vacation time which will total over $9,000. I have been informed that my unused vacation pay will be included in my last paycheck. Considering how social security allowance is calculated based on annual income, I am trying to determine what retirement date is to my best advantage. Is it more to my advantage to retire as of December 31st which would include my vacation pay in my total income earning for 2023 (which would also be my highest ever annual income total); or should I retire in January 2024 and receive the vacation payout in a new tax year where is will be subject to a lower income tax rate? Thank you. Karen
