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posted May 1, 2023 12:31:57 PM

Under business income, 'adjustig professional income for work in progress' for work in progress end of year, is this my total income for the year?

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1 Replies
Level 1
May 1, 2023 1:29:39 PM

Hi @brielleklemack-g ,

 

Any income that is paid during a calendar year must be claimed within that same calendar year, even if it is representative of payment for work in progress / a lump sum that covers a time period outside of the 2022 calendar year. For example: If you are paid a lump sum for work that is taking place place in December 2022 but also January and February 2023, you would still report that amount against 2022 in full. Don't try to pro rate the amount, even if it is for work you will be doing beyond TY22. The same goes for work you may have done in 2022 but did not get paid for until 2023, if you only ever received payment for this work in 2023, you would report on the earnings in your 2023 return. Hope this helps to answer your question!

 

Thanks!

 

EleanorB