2006-12-27 11:27:04 · 5 answers · asked by Peter E 1 in Business & Finance ➔ Taxes ➔ United States
Gross income is determined by date recd not date earned.
2006-12-27 11:38:02 · answer #1 · answered by Judith 6 · 3⤊ 0⤋
It goes by the last paycheck that the company writes that's dated 2006. If you work a few days in 2006 after that pay period, but payday for those days isn't until 2007, then that goes into 2007. But if your check is dated December 31 but you're on vacation and don't get it until January, the 12/31 paycheck still goes into 2006 income even if you don't get the check until early 2007.
2006-12-27 14:28:20 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
It refers to any monies distributed during that year to you by the company. If you worked on the 31st, unless they're paying you on the 31st, you wouldn't get a check until the following year, so it wouldn't count.
However, any checks you received at the beginning of the year for work done the end of the previous year count.
Not cashing a check on purpose won't do anything for you. It's when they distributed it to you that matters.
2006-12-27 11:36:50 · answer #3 · answered by T J 6 · 1⤊ 0⤋
depends on how your company does it. They can roll your last paycheck into next years gross income or keep it in the previous year.
2006-12-27 11:29:57 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Judith is correct. Individuals are cash basis taxpayers so the date of your payroll check is the year which it is included in income.
2006-12-27 12:58:08 · answer #5 · answered by Anonymous · 2⤊ 0⤋