☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted May 29, 2024 1:15:11 PM

PTO payout

I’m retiring 1/25. Should I use my PTO over the remaining year or take the lump sum payout in 2025?

0 1 720
1 Replies
Employee Tax Expert
May 29, 2024 1:18:49 PM

Congratulations!  If you choose to take the PTO in 2024, the income will be reported on your 2024 W2.  If you take the lump sum payout in 2025, the income will be reported on your 2025 W2.  Depending on the total PTO and your other taxable income, you may want to spread it between both tax years.