irs website?

Question

I'm trying to find on the IRS website when your final paycheck of the year is counted. In other words, we received our paycheck in '07 for work performed in 2006.

Which tax year is that paycheck supposed to go to? I've always heard that it is when you actually RECEIVE your pay is the determining factor. My employer put it on 2006.
I can't find anything on the IRS website..... Any accountants??

The pay period ended 12/27/06, but the date on the acutal check was dated 01/02/07. I have since found on the IRS website that "..if the check is available to you to cash in 2006, it goes on 2006 taxes. If the check is NOT available to you to cash until 2007, it goes on 2007 taxes REGARDLESS of when a companies pay period ends."

Thanks for all the answers! I think we figured it out!

Answer 1

Usually, your final paycheck for 2006 is your total earned income for 2006 from your employer. Your right of claim for the remainer work done is 2006 will be on your first 2007 paycheck and taxable in 2007.

Answer 2

Taxes are incurred on the actual check date, so if the check was dated in 2006 then it must count in 2006. The other problem you might have is, you can report check issues if the employer made the check dated for, example, 12/29/06 and you didn't receive it until 1/2/07 then you can report this issue to the IRS. It is a totally separate issue. Any check written to an employee must be provided to the employee on the date of the check.

Answer 3

The date on the check will show the year where it will be included in income on your W-2. The fact that you didn't actually receive it until a couple days later doesn't matter. If the end of the pay period was in 2006, what the employer did was OK.