Income Earned in 2009 but paid in 2010

My board approved a raise for me that was retroactive to October ’09. The raise amount per month was $---, totaling $---- for Oct-Dec, which when we get it, I’ll draw it (probably not all at once). I would like that to be on my 2009 income, since I have worked for that income in 2009. Possible?


Vickey's reply

No. Most taxpayers are on a cash basis with regards to the IRS. On a cash basis, income is counted when it is received...not when it is earned.

For example, I will get a paycheck this week for the past two weeks which was mostly income I earned in December, but that income will not be included on my 2009 W-2 because I received it in 2010. Make sense?




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