Annual leave


Q: I am CSRS and my plans are to retire Jan. 1. 2012. I was told that the last day for use/lose is Dec. 31, 2011, so that is the day I will have to retire. I cannot retire on Jan. 1, 2012, or I will use my use-or-lose leave. When I file taxes, will it show me receiving an additional amount of money (approximately $10,000) for the year 2011 (which will put me into a higher tax bracket), or will it show as income for 2012?

A: Your lump-sum payment for unused annual leave will be taxable in the year it is received.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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