Steve wrote:

- quote -

Use the W-2 values otherwise you will have to request the
employer to change the W-2.

If you do not use the W-2 information the IRS WILL COME
KNOCKING on your door. they do match the W-2's to the 1040
that you file...

Jerry Doblie
Jerry Doblie, CPA; MS Tax
14045 Sunnyside Ave N
Seattle, WA 98133
206-365-0143

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"Katie" <katiej_1958[at]yahoo.com> wrote:

- quote -

It doesn't hurt to note that even if the employee is an
accrual-basis (or non-December fiscal year) taxpayer, the
employer reports the same way. The employee does all the
adjusting for accrual basis. (FICA/Medicare are based
solely on date paid.) The withholding credit is not
allocated but all goes on the return for the employee's tax
year beginning in the withholding year.

--
Phil Marti
Clarksburg, MD

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Steve wrote:

- quote -

Yes, payroll reporting is always on a cash basis. For
financial reporting, they may well have accrued expenses for
2006, but that is not relevant to your paycheck.

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"Steve" <car15_2[at]yahoo.com> wrote:

- quote -

What is the date on the check?

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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Steve <car15_2[at]yahoo.com> wrote:

- quote -

For a cash-basis taxpayer, what counts is the date paid.

Seth

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Steve wrote:

- quote -

Individuals, with extremely rare exceptions, are cash method
taxpayers. You pay tax on the wages you receive, not what
you earn.

The employer probably accounts for its expense on an accrual
basis, for its own tax and book purposes. But it properly
files its payroll reports, including W-2's, on a cash basis.
Your W-2 should agree with the pay stub you received with
the last paycheck you got in 2006.

Katie in San Diego

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Steve wrote:

- quote -

In my experience, I've always had the tax year "reset" after
the last pay date of a particular year. In other words, the
first paycheck of 2007 may be fully or partially paid due to
work in 2006, but counts as 2007 income, because it's paid
in 2007.

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Steve wrote:

- quote -

When paid, the date of the check.

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"Steve" <car15_2[at]yahoo.com> wrote
- quote -

Payroll is a taxable event in the year in which it's first
made available to you. So if you were able to pick up your
check in December, but you were out on vacation till
January, it's December income. And, if they don't cut
checks every two weeks, and they delay payment for a week,
all two weeks worked fall in December, but the actual pay
date falls in January, it's January income.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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Steve wrote:

- quote -

Most individual taxpayers are on a "cash basis" accounting.
The check you received in 2007 (even if for the last part of
2006) is 2007 income. Your company is doing this correctly.

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Steve wrote:

- quote -

Yes, this is the correct way to report your income. Most
individuals are cash basis taxpayers; cash basis taxpayers
report income when received, NOT when earned.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"Steve" <car15_2[at]yahoo.com> wrote:

- quote -

They're right, you're wrong. Date paid is what matters.

--
Phil Marti
Clarksburg, MD

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- quote -

It's not your last paycheck of 2006, it's your first
paycheck of 2007. Your employer is doing it correctly.
Taxes, withholding, and 401(k) contributions are based on
when the income is paid to you, not when you earn it. That's
how it will be reported on your W-2, and that's how you
report it on your tax return.

Bob Sandler

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I just received my last paycheck of 2006 in 2007. My
company has reset all of my totals and started taking out my
401K contributions again (already at maximum contribution
for 2006). I thought that taxes were paid on wages earned
in a year not paid in a year. Is this the correct way to
report my income?

thanks

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >