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Originally Posted by diggeryo Do I owe taxes on income in the tax year I performed the work, or in the tax year I received payment?
For example, I did some contracting work for a company in October and November of 2014. As of today (February 3, 2015), I have yet to receive payment. (The company assures me I should be receiving my check in the next week or two.) So will that income be subject to tax in tax year 2014 or tax year 2015?
Thank you. |
Do I owe taxes on income in the tax year I performed the work, or in the tax year I received payment?====>>>>>in most cases , taxpayers use cash method so in the year you received your payment, you need to report the income on your return.
For example, I did some contracting work for a company in October and November of 2014. As of today (February 3, 2015), I have yet to receive payment. (The company assures me I should be receiving my check in the next week or two.) So will that income be subject to tax in tax year 2014 or tax year 2015?==>.2015 UNLESS you are an accrual method taxpayer