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May 29, 2024
Question

PTO payout

  • May 29, 2024
  • 1 reply
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I’m retiring 1/25. Should I use my PTO over the remaining year or take the lump sum payout in 2025?

1 reply

May 29, 2024

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.