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I did consulting work in 2015 but got paid in 2016. do i need to report it as earned wages for 2016?

Forum|Forum|7 years ago
June 1, 2019
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I had done consulting work in 2015.Got paid early 2016. Since I didn't "work" in 2016, Do I need to report it as income for 2016 income tax year?

TurboTax Home & Biz Windows

Best answer by ToddL

As an individual, you must report income in the year you receive it, not necessarily in the year it was "earned".

Individuals are considered "cash basis" taxpayers by the IRS. That means they recognize and report income (and deductions) in the tax year they actually receive it (or pay it).

T

ToddL

Employee

Did you rent the income and pay tax on it in 2015?

T

ToddLAnswer

Employee

As an individual, you must report income in the year you receive it, not necessarily in the year it was "earned".

Individuals are considered "cash basis" taxpayers by the IRS. That means they recognize and report income (and deductions) in the tax year they actually receive it (or pay it).