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A retiree received back payments for maternity allowance in 2024, covering periods dating back to 2017. The DGT has ruled that this income must be taxed in the years to which it corresponds, rather than in the year it was actually received.
This ruling clarifies the tax treatment of retroactive social security payments, ensuring that taxpayers attribute income to the correct fiscal years based on when the right to payment arose, potentially requiring supplementary tax filings.
The tax team reviews your specific situation.
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