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When is income taxed if it is back pay that is owed a pastor?

by Claire K.
(Phoenix, AZ)

Our pastor elected to not be paid during some lean months our church had, and we are now in the process of paying him the salary he is owed for those months. Since payment is going to cross over multiple years, we aren't sure how this will work when it comes to taxes. Is the income he is owed considered income in the year he was meant to receive it or when he actually receives it?

Example, he is owed a paycheck from September 2014 and will be paid either in January or February of 2015. Is that considered income for 2014 or 2015? My inclination would be 2015 as that's when he'll receive it, but I want to be sure.

Comments for When is income taxed if it is back pay that is owed a pastor?

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Jan 11, 2015
 Income tax
by: MarcusNtexas

Yes, if it is being paid for services rendered and it is income for the year in which it is received.
Jan 11, 2015
 back pay that is owed a pastor
by: Anonymous

Income is taxed in the year it is received, not owed.

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