topic Tax year for "early pay" direct deposit in Get your taxes done using TurboTax

Tax year for "early pay" direct deposit

azk54 — Wed, 11 Feb 2026 03:30:39 GMT

We received a notice from our bank today about a new feature in our checking account called early pay.

We will have access to certain direct deposits 2 days early. This is not an optional feature. Doesn't seem like it should be a big deal but ... My husband's pension is direct deposited on the first business day of each month. Usually the January check is deposited on January 2nd. Once this "early pay" feature starts if the deposit is credited 2 days early it will be credited to our checking account on December 31 of the previous year. So If the January 2025 check is credited on December 31, 2024 will the Jan 2025 pension payment be on the 2024 W2 or the 2025 W2?

Re: Tax year for "early pay" direct deposit

Texas Roger — Wed, 14 Feb 2024 23:45:06 GMT

Enter whatever is shown on the 1099-R that he receives from the payer.

Re: Tax year for "early pay" direct deposit

azk54 — Wed, 14 Feb 2024 23:56:49 GMT

Thanks for the quick reply. You're correct the income is reported on the 1099-R. I was just wondering if in the scenario above the January payment would be reported for the previous year.

Re: Tax year for "early pay" direct deposit

Texas Roger — Thu, 15 Feb 2024 13:30:33 GMT

The payer has no idea how quickly the bank processes the payment so they will continue to show the first payment in the new year on the 1099-R.