Taxes confuse everybody

Discussion in 'Publisher Network' started by daniel07, Jan 10, 2007.

  1. #1
    Do December earnings count as 2006 income or do they count as 2007 income since they will be paid out in January?
     
    daniel07, Jan 10, 2007 IP
  2. iBold

    iBold Peon

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    #2
    I believe (and don't quote me, I'm not an accountant) that earnings only count as soon as you RECIEVE the money. So since you recieved the check in January, you need to pay taxes on it accordingly.
     
    iBold, Jan 10, 2007 IP
  3. lorien1973

    lorien1973 Notable Member

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    #3
    Its up to you, really. If you do accrual based accounting, make an invoice for google at the end of decmember for the earnings; then its 2006. If you are cash based and just do an invoice for when you get the payment, then its 2007. I'm cash based, so its 2007 for me :) There is no right answer here. I'd say most people here use a cash basis of accounting.
     
    lorien1973, Jan 10, 2007 IP
  4. ArcticPro

    ArcticPro Banned

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    #4
    You pay based on when you receive the income. So if you receive the income for December 2006 in January 2007 it will be apart of 2007's income not 2006, if you are still unsure you should talk to a CPA.
     
    ArcticPro, Jan 10, 2007 IP
  5. digiseek

    digiseek Peon

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    #5
    I agree with you. December 2006 income will be counted as 2007's income
     
    digiseek, Jan 11, 2007 IP
  6. Trippen

    Trippen Peon

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    #6
    If you get payment in 2006 then it gets taxed in 2006
    If you get payment in 2007 then it gets taxed in 2007.
    They get you either way :mad:
     
    Trippen, Jan 11, 2007 IP
  7. SonicReducer

    SonicReducer Peon

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    #7
    Exactly right. I'm on accrual so this revenue would be an account recievable for 2006 and go on the 2006 taxes.
     
    SonicReducer, Jan 11, 2007 IP