If my December paycheque was given to me in January, do I have to declare it?

[UnatcoAgent]

My boss wasn't able to pay my December earnings until late January, so I'm wondering if I have to declare it on my tax return this year, or if I leave it for next year, any ideas?

 

[jemcam]

paycheque

This spelling suggests you are not from the US. It's probably best to ask someone who is familiar with your country's tax system.

 

[Jeraden]

If the check is dated in January, you'd declare it on your 2007 return, not 2006. If the actual check date is december, but he just gave it to you late then it would go in 2006. (though he really shouldn't be doing that).

 

[kevnich2]

You're working for someone that can't afford to pay you until a month later? I'd be looking for another, more stable job? If my boss came to me and said, sorry, we can't pay you for another month for the work you've already done for us, I'd be like, well, bye. I did the work on time for you, you pay me on time for that work. Simple business transaction.

 

[bunker]

Originally posted by: Jeraden
If the check is dated in January, you'd declare it on your 2007 return, not 2006. If the actual check date is december, but he just gave it to you late then it would go in 2006. (though he really shouldn't be doing that).

I always thought you had to declare it in the year you earned it.

 

[phoenix79]

Originally posted by: bunker

Originally posted by: Jeraden
If the check is dated in January, you'd declare it on your 2007 return, not 2006. If the actual check date is december, but he just gave it to you late then it would go in 2006. (though he really shouldn't be doing that).

I always thought you had to declare it in the year you earned it.

Nope, only when you got it.

 

[Cookie]

Originally posted by: bunker

Originally posted by: Jeraden
If the check is dated in January, you'd declare it on your 2007 return, not 2006. If the actual check date is december, but he just gave it to you late then it would go in 2006. (though he really shouldn't be doing that).

I always thought you had to declare it in the year you earned it.

You declare it the year that you recieve it. (In Canada anyway) That happened to me a couple years ago, when I did a short temp job in September. He didn't get around to paying me until January (and probably wouldn't have paid me at all if I didn't keep calling). I was told to declare it the year I recieved payment.

 

[UnatcoAgent]

Originally posted by: Cookie

Originally posted by: bunker

Originally posted by: Jeraden
If the check is dated in January, you'd declare it on your 2007 return, not 2006. If the actual check date is december, but he just gave it to you late then it would go in 2006. (though he really shouldn't be doing that).

I always thought you had to declare it in the year you earned it.

You declare it the year that you recieve it. (In Canada anyway) That happened to me a couple years ago, when I did a short temp job in September. He didn't get around to paying me until January (and probably wouldn't have paid me at all if I didn't keep calling). I was told to declare it the year I recieved payment.

So I'm pretty much in the same boat here, I'd declare it for next year then. Thanks guys.

 

[SoulAssassin]

You don't get the equivalent of a W2? Some kind of summary of your earnings for the year?

 

[Cookie]

Originally posted by: SoulAssassin
You don't get the equivalent of a W2? Some kind of summary of your earnings for the year?

In Canada it's a T4, and yes, you should get one of those too. (I don't know if you would get one in EVERY case.)

 

[UnatcoAgent]

Originally posted by: Cookie

Originally posted by: SoulAssassin
You don't get the equivalent of a W2? Some kind of summary of your earnings for the year?

In Canada it's a T4, and yes, you should get one of those too. (I don't know if you would get one in EVERY case.)

This is all contract work so no T4 from this job.

 

[pontifex]

Originally posted by: jemcam

paycheque

This spelling suggests you are not from the US. It's probably best to ask someone who is familiar with your country's tax system.

since when have all ATOTers been Americans?

There are many Canadians and Europeans on this forum, not to mention representatives from many other countries.

 

[EagleKeeper]

Originally posted by: Sabot

Originally posted by: Cookie

Originally posted by: SoulAssassin
You don't get the equivalent of a W2? Some kind of summary of your earnings for the year?

In Canada it's a T4, and yes, you should get one of those too. (I don't know if you would get one in EVERY case.)

This is all contract work so no T4 from this job.

Are you in Canada or just doing work for a Canadian company?

 

[Double Trouble]

I don't know about Canada or anywhere else, but in the US it would be based on "constructive receipt" date, which is basically the date the instrument (a check) was issued and mailed.

From a business perspective, you have a little more room to operate in terms of when to recognize income and expenses etc, but for your personal income taxes I believe it would just be based on the issue date.

 

[UnatcoAgent]

Originally posted by: EagleKeeper

Originally posted by: Sabot

Originally posted by: Cookie

Originally posted by: SoulAssassin
You don't get the equivalent of a W2? Some kind of summary of your earnings for the year?

In Canada it's a T4, and yes, you should get one of those too. (I don't know if you would get one in EVERY case.)

This is all contract work so no T4 from this job.

Are you in Canada or just doing work for a Canadian company?

Canadian in canada doing work for a canadian company