Dizney
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if you got the income in 2006, it is 2006 income
BTW, if the check is dated 12/31/2006 and you didn't receive it until 1/1/2007 - that's 2007 income. It doesn't matter what the date of the check is it is then you get "constructive receipt" - you have the check. |
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chibbi26
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2006 |
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need a reality check
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2006 |
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Supplicant
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2006, you received the check (income) then. |
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peeps
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I do not think when the checks cleared matter I believe when you received the checks is what mattered like if it were for a job and I got paid on Dec 30 but did not get the check cashed until Jan 8 the income would still be from the previous year. |
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dbake50
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Income is taxable for the year in which it is paid. It should show on the tax form (w-2, 1099, etc.) as income received in 2006. |
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malacom1
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2006 |
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waggy_33
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Thylawyer is totally wrong. A check is considered cash and it is income when you receive it even if you hold the check until the next year. Closing your books early is considered fraud and the IRS frowns on this practice. Thylawyer can't be a real lawyer or he wouldn't be advising a practice that would cause a client legal problems such as this. And it isn't a matter of how is the service going to catch this.
This is based on 35 years as a tax planner and adviser. |
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MOM KNOWS EVERYTHING
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It doesn't depend on the deposit; it depends on when it was GIVEN to you under most circumstances. If you earned the income in 2006, you owe the taxes on it for 2006. There may be some exceptions to that rule -- check the IRS site for the best information.
irs.gov |
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dymps
 |
Hello
the income tax is due for the income you deposited in 2006. Since you deposited it in 2006 the record will show that the income tax is due for the all the income deposited in 2006.
Hope this helps |
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blt_4
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If the check is dated on or before December 31, 2006 then it is income in 2006. If it is dated January 1, 2007 or after then it is income for 2007. |
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jseah114
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2006. You received the income in 2006 when you received the payment, not when the check cleared. |
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Wayne Z
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2006
Recognition of income is based in constructive receipt.
They same rule would apply if you receive a check in 2006 but did not deposit it until 2007, it would still be 2006 income. |
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bostonianinmo
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You report it as income in the year you receive the check. |
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Kutekymmee
 |
2006
it counts for when you EARNED the money, not when it was actually paid. |
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lavendertg
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2006.
did it bounce or did the holiday just interrupt the process? if it bounced then 2007. |
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mr. dorkface
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this year. |
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Judy1
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2006. Even if you didn't deposit it until 2007, if the check was written in 2006 that's the year you'd show it in. |
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Barkley Hound
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The date on the check. |
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hot_tamale962
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it depends on when the money was made not when the money was spent |
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thylawyer
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If you are like most people, you operate on a cash basis, and a check is NOT a payment until it is cash in your hands or bank account. As a practical matter, if you know 2007 will be a better year, you may want to include it in your 2006 return, or in 2007 if your 2006 income is better than you expect 2007 to be. Unless it is a large amount, it won't make much of a difference. |
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hah
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It depends on when the deposit was recorded...in the bank..not the clearing date... |
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Dr Universe
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2007 |
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brotherman2112
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Honestly i think it can go both ways. You could always ask an Accountant. |
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