If I got a new job in October 2020 but did not get paid until 2021, do I need to include that in my taxes?

trynatax2019 · ‎March 8, 2021

SweetieJean · ‎March 8, 2021

No, but why didn't they pay you until then? Most states requires payroll to be made within shorter time periods.

MinhT1 · ‎March 8, 2021

As you are on a cash basis, income received in 2021 is only reportable on your 2021 tax return (next year) even if the payment was for work done in 2020.

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trynatax2019 · ‎March 10, 2021

The project ended late December. Took a while for my payment to go through the system and there were some hiccups I had to sort out with HR to get my payment.

ErnieS0 · ‎March 10, 2021

The IRS taxes you in the year income is received, so as Tax Expert @MinhT1 the money should be taxed in 2021. Double-check with HR to make sure they are not going to issue a 2020 W-2 or 1099-NEC.

They should not, but you said there were some hiccups so it's worth checking.

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If I got a new job in October 2020 but did not get paid until 2021, do I need to include that in my taxes?