Forum Moderators: martinibuster
Does anyone know for tax purposes if we need to declare the Nov and Dec 2003 income in the year 2003 if we don't actually receive it till the year 2004? Just curious about that. It is earned in those months but they won't send the checks before end of calender year.
If the November check is printed and mailed late December chances are that Google will report it as this year's income (income to you, deductable expense for them). They will probably send out 1099 forms, you should use that unless there are some other errors in it.
If your return differs from the 1099 report to the IRS, you will have some explaining to do to the IRS. Unless there is a very large amount of money, the difference between paying tax next April or the following April is not worth dealing with the IRS over which year you were paid.
Of course, this applies to the USA only. I am not a lawyer or tax accountant. You should rely on your tax preparer for advice.
With my engineering clients, I always try to invoice so that I will not have a situation where they print a check in December and I receive it in January. If I have a very large invoice around the first of December I hold it for a few weeks so it will count as the following year's income. Of course, that can't be done with Google or other similar businesses.
I'm V. P'd off about the late payment. It would be nice if someone could work out how much interest they've made on the delay.
So far as the delay for tax reporting is concerned John_Shaw is correct. But every US adsense person should get their checks before dec 31.
Google will have to cut 1099's by (I think end of Jan - pls correct me on that one)for their tax purposes
I'm sure that everyone has really given google there "real" tax ID, so that the IRS can check up.
They ought to put that into the FAQ:
Q: "Why is the postmark on my check several days later than the date when 'check sent' shows up in my Adsense reports?"
A: Because we are GOOGLE! We do what we want! Your puny dates are no match for us! MUWAHAHAHA!
[/silly]
But seriously, I wish they'd put the actual "sent" date in there or explain why it doesn't match the postmark. :-)
Oh, and still no check here.