Can I ammend my 2005 returns???

Question

I worked for an employer in 2005 who did not pay me for almost a year. In Dec 2005 i changed jobs and moved to another state. My old employer paid me all the salary he owed me in 2006. I have two W2 of 2006, one from old employer and one from new employer . I was wondering if it would be possible to ammend my 2005 returns, since that salary should have been paid in 2005. What would my old employer need to do to give a W2 of 2005? I would get into a lower tax bracket if that was possible. Your advice will be appreciated. Thanks...

Answer 1

Unfortunately, income is reported and taxed according to when you received the income, not when you did the work. This happened to me once before: I did some contract work in November and December 2005, but didn't get paid until January 2006. My income was reported on my 2006 tax return.

If you actually got paid in 2005 but received a 2006 W-2, it would be possible to get a corrected W-2. But since you were paid in 2006, the 2006 W-2 is correct.

Next time, make sure your employer pays you on time!

Answer 2

No, you can't amend your 2005 return since the wages were actually paid to you in 2006. You must claim the income on your 2006 tax return.

Answer 3

If you actually received the money in 2006, then that's when it's income to you even if it should have been paid but wasn't in 2005, so you'll have to claim it for 2006.

Look at it this way - at least you finally got your money from him.

Answer 4

If you receive the income in 2006, it is 2006 income! It doesn't matter when it was earned. It matters when it is paid.