if i deposit income in 2006 but the check clears in 2007, for which year is the income tax due?

Answer 1

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.

Answer 2

2006

Answer 3

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.

Answer 4

2006

Answer 5

2006

Answer 6

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

Answer 7

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.

Answer 8

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.

Answer 9

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.

Answer 10

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.