My SF50 shows retirement effective 12/31/17. I retired in middle of pay period 12/24/17-1/6/18 and was paid 1/12/18. But I did find SSA publication that says it’s earned income for the year earned (17) and not the year paid (18). I have rebuttal package ready to go to SSA. DFAS and SSA must not talk clearly to each other.
I carefully planned my retirement to be at the end of 2018 so that my final two 2018 paychecks (which were paid in January 2019), plus my annual leave lump sum check paid in 2019, would all be counted as 2019 income, and would be enough income to put me over the SSA's limit for "substantial income" under the Windfall Elimination Provision rules.
It worked out perfectly since income is counted in the year received, not the year you earned it. SSA is right and you'll see on your current SSA statement that they counted your final paychecks that were received in 2018 as 2018 income. This is how it works, and you stated your W-2 showed that as 2018 income as well, so you paid income taxes on that income for 2018, not 2017.
Hope this helps, I know the WEP stuff doesn't apply to you but the rules regarding income are the same for everyone. All you have to do is go back and look at your income for every December/January of your entire career...your income counts in the year you received it, not the year you earned it.
Pending AllocationsUnder development. For now, you may view Pending Allocations by going to "fantasy TSP" and selecting "Leaderboard sort" of "Pending Allocations".
What else"Don't ever half-ass two things. Whole-ass one thing."
- Ron Swanson