Checks written on Jan 4 for work done in prior year December. Cash basis taxpayer. Wages would be included on new years w-2;s---2010 ???
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Right or wrong> that is the way I do it and have done it for 35 years..Originally posted by gman View PostLast edited by BOB W; 01-06-2010, 12:08 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
2010
If you are a cash basis taxpayer you claim a bill when it is paid not when it is incured.
DustyComment
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If payroll checks are dated Jan 1, 2010, then it goes with the 2010 W-2's.Dave, EAComment
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Interesting instance
I belong to a board in our city and get a small stipend for meetings. In 2008 the city staff dated a stipend check for a couple hundred dollars 12/31/08. The city council had to approve the expenditures and they did not meet until the 2nd week of January of 2009 at which time they approved the expenditures and the checks were mailed out. I assumed, being a cash basis earner, that I would not be getting a 1099 for that amount in 2008. They fooled me though!! I talked to staff and tryed to explain the idea of constructive receipt but to no avail. It was not that much money and I would have to pay taxes on it one year or the next but it still bugged me.Comment
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dci and Dusty are correct. If the checks are paid in January, the income goes in that year, not the previous one.Comment
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This issue seems to come up regularly -- at least every year <<grin>>.
A very wise person once told me years ago: Would you want to be taxed on money you haven't received?
When it is phrased that way, it becomes very clear that a check issued to you in January 2010 is for 2010 wages and not 2009.
MaribethComment
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And even IRS agrees with this.Originally posted by dsi View PostChEAr$,
Harlan Lunsford, EA n LAComment
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dates on checks
And the point of posting my instance was to say that the date the check was written should not always be the determining factor of which year income is taxable. Constructive receipt must also be weighed.Comment
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Well, anyway Bob,
even if all the other folks are right and you're wrong, I feel better about it 'cause I've set a few similar unorthodox "precedents" myself by doing them "my way" for many years. It's very reassuring to hear that your consequences have been zero-nothing-zilch.Originally posted by BOB W View Post
No point in taking all this stuff too seriously.Comment
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I guess I wasn't clear when I said "I do IT that way". I meant that check date is the year it goes to.Originally posted by Black Bart View Posteven if all the other folks are right and you're wrong, I feel better about it 'cause I've set a few similar unorthodox "precedents" myself by doing them "my way" for many years. It's very reassuring to hear that your consequences have been zero-nothing-zilch.
No point in taking all this stuff too seriously.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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