Constructively Receipt

[wtdssmith]

I have a Non-Qualified Deferred Comp Distribution W2 that was dated 12/31/2021 mailed.  I did not receive until 01/10/2022 and can prove via a copy of USPS Informed Delivery.

How do I show this 2021 based on "Constructively Receipt"?

I assume on Schedule C.

Do I make a Business called Non-Qualified DC?

Claim as Other Deduction?

[PatriciaV]

The tax year for this distribution is the date on the W-2 itself. If it is dated in 2021, then you would report this income on your 2021 tax return.

Enter this Form W-2 under Wages & Salaries in TurboTax; there is no need to create Schedule C. 

See this IRS article for more information: Deferred Compensation Plans

[wtdssmith]

I understand this is income, However, it was not received until the follow year.   

Check dated 12/31/2021 and mailed

Received 01/10/2022

Is it normal to declare money you did not "Constructively Receipt" until the following year?

Thanks for your reply

[DianeW777]

The employer has specific reporting requirements for nonqualified deferred compensation (NQDC).  You should check with your employer about whether the W-2 should be corrected.  Otherwise you must report the W-2 exactly as it was received.

Constructive receipt is a key element for income tax reporting, however as stated the employer will have specific rules for reporting the NQDC, which would be to report on the effective date which for them was December 31st.