If you paid the back pay award in the same tax year to which it applies, report the wages on that year's Form W-2. No further action is necessary. Example. In 2012, Judy Wilson received a salary of $30,000 and a back pay under statute award of $2,000 for the period January through June 2012.or the year, the employeeâs regular pay was $200, and the employee deferred $20 of the pay into her employerâs NQDC plan. The deferral of $20 was vested upon deferral and there was an employer match of $10 under the plan, which was also vested.
If you file a claim for credit or refund after filing your return, keep records for 3 years from the filing of the original return. If you file a claim for a loss due to bad debt deduction or worthless securities, keep records for 7 years. Keep all employment records for at least 4 years after the tax is due or paid.
Still, you'd be surprised at how much you can safely discard. Here is what you should keep and how long you should keep it. Three Years. Keep your federal and state income tax returns and related receipts and statements for at least three years.o if the IRS hasn't raised any issues about your 2004 tax return by now, then it should be safe to shred and discard it. Seven Years. Keep any tax return and documentation that includes a claim for deducting worthless securities for seven years. There you have it.