Any WI tax Profs here?? (Page 1/1)
pavo_roddy MAR 01, 02:24 PM
HI all

Okay, so I have a check that is both in Dec of 2021 and Jan. of 2022. The Check of course was issued in Jan. of 2022.

Will this check be included with my 2023 Taxes? This is what a realiable source is saying.

Jus thought I should get a second opinion ya know.. Who wants an audit, lol....


Thanx all,

Aireek
D3M6B MAR 02, 01:35 PM
Not a professor
however i am an Accountant
Not tax, but coporate

that said
the main thing, is what event occurred to trigger you to receive income
as the income can only be recognized upon it being earned. meaning you cant for example, earn the income in 2020 for fixing a car that is not completed in 2021
instead this will be classified as unearned income. and the amount in this account woould be offset by a revenue/income account

example. you have $2,000 in unearned income account. and you've determined that its going to take 4 months to fix it. this mean every month you would take $500 out of the unearned income. move that $500 to revenue/income. and now you've earned/recognized the portion of the amount of money you have been paid by the customer

the above is how you could earn income in one year and in the other year


if the above as clear as mud. i can try to clarify using what the actual event is
pavo_roddy MAR 02, 03:39 PM
HI all

Prof could also refer to " Professionals " A little joke to set the mood.

What more clarity do you need?

I had a pay period that was in both months. Culminating in a Jan. 2022 check.
Any questions?

Thanx all,

Ear-eek
theogre MAR 03, 10:29 AM
In General...
Most states and IRS goes by Date on the Check to pay you. Most times Doesn't give a crap why or when you did whatever job or sold something.

If you didn't file W4 as an employee to get W2 at end of year...

If from a business, they most likely will sent you 1099 (full name 1099 misc) at end of year. Fed requires this for any payment => $250 (Was => $500) but States can require this => $0
PDF form to send IRS and person paid... (for 2021) https://www.irs.gov/pub/irs...r/f1099msc--2021.pdf
Note: This is Total Payment per Year if paid on separate checks.
Example: I got many 1099 before but Just got one for $20 for State I-tax but Fed section are blank because under Fed reporting limit.

Any Person paying you are often require to file 1099 etc too and not doing that can = tax problems later. For Both of you.

Even w/o 1099, Short and Long form 1040, Maybe 1040EZ and many other Tax forms have blank box to fill in "Other Income."
Note that If 1099 or "Other Income" amounts don't have Tax Withheld and is a largish amount then other Withholding may not be enough and you Pay State, Fed or Both by Cut Off Date(s). Feds in most years is infamous April 15 but a State can have different due date.

⚠️ Warning: IRS and State can take Years to find problems and then Bill, at minimum, everyone for Fines, Taxes and Interest from date of the error 1040 and other forms are filed or found missing.

Is part of why Feds are trying to track all Banks for all Transactions => $600 now. That data will likely soon reported to many states to cities as well for people not paying Income and Sales Taxes. Example: Many in NYC buy a lot of things in NJ and elsewhere to avoid Sky High NYC Sales Tax. Now NYC will want to see you paid Best Buy to get that new computer etc in another state to force you paying NYC Sales Taxes. (That ignoring for Many Years in NYC people get "Bounties" for reporting other people for avoiding Sales Tax.)

------------------
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[This message has been edited by theogre (edited 03-03-2022).]

Hudini MAR 04, 09:38 PM
I always understood it as the date you received the money, not when you worked.

I'm getting paid 2 months after the actual work so my taxes are based on the date I get my hands on the cash.