On the W-2, what months of pay are covered? I recieved my W-2 from my employer and it covers paychecks that cover January 1 through December 15 along with a bonus and my December 15-31 was reported as 2008 income. Does this sound correct?
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If you received the money (check) for the pay period Dec. 15-31 in January 2008, then it is taxed as 2008 income. The IRS treats individuals as "cash basis" taxpayers. Income is treated as earned when cash is received. You probably didn't receive your pay until January, hence it is 2008 income. -
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