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You have officially earned income in the year you completed the work, regardless of when you are actually paid. One exception to this is the year-end payroll period. To qualify for a year-end payroll time you must have all 4 of the following:



The payment is done during a normal payroll period. The payroll period should include the final day of the tax year probably December 31st if you pay on a calendar year schedule. The payroll period must be smaller than 16 days. The payroll money should normally get there before the ending of the next payroll IGN EARNED INCOME EXCLUSION



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