I serve in the New Mexico Army National Guard and each month $28 is deducted from my paycheck to cover $400,000 of life insurance. Years ago the state decided to refund these premiums each year, essentially making it free to have the maximum amount of life insurance coverage for service members.
The state has been trying to switch from paper checks in June and December to direct deposit. I think I've submitted a direct deposit form at least 3-4 times in the last few years and somehow it still never gets processed. Today I received paper checks for both of my 2018 reimbursements that I never received. The total is $336 which I normally recognize as 1099-MISC income. So, even though the checks are dated June and December, because I didn't receive them (or cash them) until January. Would I recognize this income in 2018 or 2019?
I'm in the 12% tax bracket, MFJ, and have six kids so either way, will be getting a nice chunk back. However, I converted about $20-25k of 401k to Roth 401k so my income on paper is going to be close to $100k this year.