When the January 3 check delivery date falls on a non-banking day and the first previous banking day is in the previous year, we deliver the January benefit check in December. However, for taxation of benefits purposes, the check for January 3 that we issued in late December is treated as if we issued it in the year associated with the intended January 3 delivery date.

This treatment is directed by Section 86(d)(5) of the Internal Revenue Code.

January 3, 2016 is a Sunday and the 1st is a Federal holiday. As a result, the first banking day before the 3rd is December 31, 2015. Therefore, beneficiaries in Payment Cycle 1 receive a 13^th payment in 2015.  However, for tax purposes, the check issued December 31 is treated as if issued in 2016, i.e., the current tax year.