Received retroactive pay from 2022 but received check in 2023

I was waiting for my background check and paperwork to go through for in-home supportive services. I was retroactively paid from 11/22 to the end of 12/2022. I just received my retro pay this month 3/2023. Do I file or claim that income for 2022 taxes or do I wait until next year since I received the paycheck in 2023? I was not giving a w2 since it's been recently since I was approved for retro pay. No federal or state taxes were withheld but on the retro paychecks fica and social security were taken out.

246

Expert Alumni

Mar 27, 2023 8:12:32 PM

Generally, income is reported on your tax return when you receive it (which is called the cash method of accounting). You will report the income on your tax return when you receive the W-2 for your wages. Unless you specifically report your income under the accrual method, you will report the income on your 2023 tax return. The retroactive pay should be included on your W2 for next year.

For more information, please review the TurboTax articles What is the cash method of accounting? And What is the accrual method of accounting?

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Received retroactive pay from 2022 but received check in 2023