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L
ltkm
February 6, 2023
Question

Receive payment for service from last year - how to report income

  • February 6, 2023
  • 1 reply
  • 0 views

Hello,

I am self-employed and I provided a service last year 2022. I was

paid this year with a check dated this year 2023 with a note 

"For 2022".

I use cash method to report income.

Can I report this income as 2022 income or I have to report as 2023 income.

I would like to report this income as 2022 income if I can.

Thank you,

Ltkm

 

1 reply

CatinaT1
CatinaT1
February 6, 2023

If you use the cash method of accounting you account for your income when it was actually or constructively received, not when the income was earned. Constructively received generally means it was applied to your bank account. 

 

If you did not actually receive the check until 2023, it would be income for 2023.

 

 

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