Wednesday, December 21, 2011

What year is 2010 income, paid in 2011, taxable?

My husband ped away in December of 2010, His company and private disability insurance owed him pay for Nov. and Dec.of 2010. His company paid his salary and vacation owed in January of 2011. I am still waiting on the disability and expect it to be paid soon. Should I receive amended W-2's or is this money taxed as 2011 income. I am sure the IRS has rules but I would prefer it to be 2010 income. Two of his life insurance policies are taxable so I will be getting slammed on 2011 taxes. I need to hold on to as much $$ as possible we have 2 daughters I will have college tuition in a few years and will be paying COBRA until I find a job with benefits.

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