Business \\ Tax Question
 

Hopefully someone can give me the answer.

Basically I have done work for a company for 2007 and want to get paid in the year 2007 for tax reasons. The company I work for might not be able to pay until the middle of January 2008.

How does that work? Do they SHOW that they paid me for 2007 somehow so I can claim it on my 2007 tax return?

Basically I don't want to skip a year and then have double payments in 2008 on tax return.

Thanks

Re: Business \\ Tax Question
 

Why do you want to pay your taxes early? Be happy that you don't have to pay tax on the money until 08 and cash in on a years worth of interest on the tax dollars in the meantime.

Re: Business \\ Tax Question
 

its possible you might be able to delclare it in either year depending on how you bill and how they issue the check. check with your advisor on this.

Re: Business \\ Tax Question
 

newt- he probably has very little or no other income this year and plans to make a lot next year

Re: Business \\ Tax Question
 

Exactly. I don't want to double up next year, I need to establish a nice pattern.

Re: Business \\ Tax Question
 

Typically taxable income is done on a cash basis. If you don't receive the cash by 12/31, you will have to take that money as income in 2008.

This can be moot if you run an accrual based business and bill the company for your services before 12/31.