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#6
08-21-2003, 03:24 AM
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 Re: Delaying income wilcoxclan wrote: - quote - > I will be getting a bonus check in the mail around 12/25/03.
If you receive the check in 2003, you have taxable income in> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. If I receive > the check on 12/26/03 but don't deposit it until 1/1/04 can > I count it on my 2004 taxes instead of 2003. I bet that it 2003 no matter when you deposit the check. - quote - > shows up on my W2 from my employer regardless of when I
If your employer completes your 2003 W2 correctly, the bonus> deposit the check. will be included. Regards, Bill ~~~~ Associate Professor of Accounting Longwood University Department of Accounting, Economics & Finance http://www.longwood.edu/staff/wpbrown/ Opinions expressed by me are mine, not my employer's. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#5
08-21-2003, 03:04 AM
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| Re: Delaying income wilcoxclan[at]wwjv.net (wilcoxclan) wrote: - quote - > I will be getting a bonus check in the mail around 12/25/03.
If the check is in your hands in 2003, it is 2003 income.> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. You can ask your employer to defer payment. But if you are maxed out on Social Security, it may not be worth it, since you will be into a new year for Social Security in 2004. -- Chris Green << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#4
08-21-2003, 02:45 AM
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| Re: Delaying income "wilcoxclan" <wilcoxclan[at]wwjv.net> wrote: - quote - > I will be getting a bonus check in the mail around 12/25/03.
Normally it will show up on the W-2 based on the> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. If I receive > the check on 12/26/03 but don't deposit it until 1/1/04 can > I count it on my 2004 taxes instead of 2003. I bet that it > shows up on my W2 from my employer regardless of when I > deposit the check. constructive receipt doctrine. However, if the bonus is large enough, and if you wanted to defer it long enough (say until retirement) there might be a way to do it. A new financial product called Wealth Builder is now available that can allow you to defer your bonus into the future, up to 30 years into the future. But for it to be workable it has to be real money and you have to be willing to defer for several years. Gene E. Utterback, EA << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#3
08-20-2003, 10:41 PM
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| Re: Delaying income wilcoxclan wrote: - quote - > I will be getting a bonus check in the mail around 12/25/03.
No. If you receive (or could have received) the check by> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. If I receive > the check on 12/26/03 but don't deposit it until 1/1/04 can > I count it on my 2004 taxes instead of 2003. I bet that it > shows up on my W2 from my employer regardless of when I > deposit the check. 12/31, it's 2003 income. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
08-20-2003, 09:43 PM
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| Re: Delaying income - quote - > I will be getting a bonus check in the mail around 12/25/03.
No. You received it in 2003, you have 2003 income. It does> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. If I receive > the check on 12/26/03 but don't deposit it until 1/1/04 can > I count it on my 2004 taxes instead of 2003. I bet that it > shows up on my W2 from my employer regardless of when I > deposit the check. not matter when you cash it. Helen, EA in PA Member of The Tax Gang President, PA Society of Enrolled Agents 1040EZ and 1040A tax prep at www.1040.com/1040pro << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
08-20-2003, 09:24 PM
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| Re: Delaying income wilcoxclan[at]wwjv.net (wilcoxclan) wrote: - quote - > I will be getting a bonus check in the mail around 12/25/03.
"Constructive receipt" is the determining factor. Since you> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. If I receive > the check on 12/26/03 but don't deposit it until 1/1/04 can > I count it on my 2004 taxes instead of 2003. I bet that it > shows up on my W2 from my employer regardless of when I > deposit the check. will receive the check PRIOR TO the end of 2003, it is 2003 income -regardless of when you deposit it. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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08-20-2003, 09:24 PM
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| Re: Delaying income "wilcoxclan" <wilcoxclan[at]wwjv.net> wrote: - quote - > I will be getting a bonus check in the mail around 12/25/03.
The issue here is known as "Constructive Receipt" and on> I would like that check to be on my 2004 tax year because my > income will be considerably higher in 2003. If I receive > the check on 12/26/03 but don't deposit it until 1/1/04 can > I count it on my 2004 taxes instead of 2003. that issue I am the local self-appointed authority. So it is highly improbable that any knowledgeable professional will disagree with me on the following answer. Answer: NO WAY! HOWEVER, if the check bounces, the answer changes. - quote - > I bet that it shows up on my W2 from my employer regardless
You definitely have that part right.> of when I deposit the check. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
08-20-2003, 02:51 AM
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| Delaying income I will be getting a bonus check in the mail around 12/25/03. I would like that check to be on my 2004 tax year because my income will be considerably higher in 2003. If I receive the check on 12/26/03 but don't deposit it until 1/1/04 can I count it on my 2004 taxes instead of 2003. I bet that it shows up on my W2 from my employer regardless of when I deposit the check. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| delaying, income |
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