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Old 02-04-2015, 01:03 AM
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Tax year income is subject to

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.



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Old 02-06-2015, 09:27 PM
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Originally Posted by diggeryo View Post
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



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