If PUA (unemployment) was held up in appeals over two years before finally dispersed, in which year do you file as income on taxes? Given if its filed when received the income for both the actual year owed and the actual year paid would be untrue if filed when received!?!
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3Income tax questions need to include location information. Please specify the country and or state.– mhoran_psprepCommented Aug 16 at 10:30
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Added details based on what I know PUA to be, feel free to edit if incorrect– littleadvCommented Aug 16 at 19:35
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1 Answer
Generally, US individual tax payers are cash-based. That is, income is taxed when it is actually (or constructively) received, not when it was earned.
In this particular case, the income has been received (or constructively received) once the appeals were exhausted and the entitlements established. The fact that the unemployment eligibility is for year X doesn't matter, what matters is that the appeals were exhausted and the entitlements established in year Y. There may be some gray area if the entitlement was established in year Y but the actual payment received in year Z, but that would probably be a very narrow edge case.
So if the appeals were exhausted and the PUA received in year Y - it is reported on the tax return for year Y, not the year X when (or for which) the request was filed.