I worked as an independent contractor for firm in 2006. For the time worked from Nov to mid Dec they paid it in 2006 and for the time worked between dec 15th to dec 31st they paid it in january.
They sent me a 1099 that doesn't include the payment they made in January for the time worked in december.
Is this correct?
Shouldn't they count the payment made in Jan towards my 2006 income?
thanks
vinay
2007-02-07 09:02:05 · 4 answers · asked by guptv 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
Yes that is correct. You will get a 1099 for 2007 in 2008 showing the wages paid in January. The 1099s reflect when the wages are paid. Not when the work was done.
2007-02-07 09:05:34 · answer #1 · answered by rscanner 6 · 2⤊ 0⤋
No, they report only the money paid in 2006. The payment in January will be reported to you as income in 2007. This is actually better for you, you get to delay paying taxes for a year.
2007-02-07 09:06:35 · answer #2 · answered by Alexander K 3 · 0⤊ 0⤋
No, it is only income to you when you are paid (you are on the cash basis). So you will pay taxes on the income earned from December 15 through December 31 on your 2007 tax return.
2007-02-07 09:06:27 · answer #3 · answered by jseah114 6 · 0⤊ 0⤋
They did it right. Any income earned in 2006 but RECEIVED in 2007 is 2007 income. Date of receipt is what makes in 2007 income.
2007-02-07 10:46:45 · answer #4 · answered by Dizney 5 · 1⤊ 0⤋