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