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New Member
posted May 31, 2019 11:42:25 PM

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

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?

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1 Best answer
New Member
May 31, 2019 11:42:28 PM

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).

2 Replies
New Member
May 31, 2019 11:42:27 PM

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

New Member
May 31, 2019 11:42:28 PM

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).