Mixing Helpfulness and Humor Since 2005

Thursday, November 02, 2006

IRS Tip of the Day

With the end of the year drawing nigh, you may realize that you have plenty of money in your checkbook to survive until the end the year, and a few checks you have yet to deposit. If you deposit these checks without having a business expense to offset them, Uncle Sam will happily tax that income and have his way with it. But if you'd rather have your way with Uncle Sam, you can follow this tip. Take those checks sitting on your desk and wait to deposit them until the new year. That way, you won't pay tax on them for this year, your taxable income goes down, and you can keep that money saved for a rainy day.

UPDATE: We try to stay away from it, but we did some actual research into this tip. As many suspected, you can't actually do this. Your income is your income when you make the money, no matter what year you end up getting around to putting it in the bank.

7 Comments:

Blogger Pete said...

Frankly I don't believe it. I want to see that stand up in an audit. Doesn't someone out there work for the IRS and can tell us if this is legitimate?

02 November, 2006 07:58

 
Blogger The Keiser said...

Yeah, and the company that wrote the check to you will submit the 10-something form to the IRS, so they will know that you have that money. I think they're required to submit the form if they pay you more than $600 in a year, but don't quote me. Besides, you'll have to pay the tax eventually.

02 November, 2006 10:07

 
Blogger Jay said...

Disclaimer: Pete and Jay Enterprises are not investment consultants, tax advisors or accountants, so any financial tips on this site are merely informational. You should check these facts, and others with your financial planner.

02 November, 2006 11:07

 
Blogger vander said...

When Media Majors Give Tax Advice....sounds like trouble.

02 November, 2006 12:13

 
Blogger Amanda said...

Jason - I feel a bad for you today. You are a good person. Just because you don't know how to properly tax evade, doesn't mean you don't have valuable tips to share with all of humanity. Keep on tipping; don't let this hinder you.

02 November, 2006 13:31

 
Blogger Amanda said...

Vander, you will need to change your blogger profile since you are no longer working (as of tomorrow) at a life sucking job - Congrats friend!

02 November, 2006 13:33

 
Blogger Andy said...

Unfortunately, you'll simply have to pay next year. However, depending how much money it is, it might be worthwhile to have it sitting in your bank for a year, gaining interest for you, rather than in the Federal Reserve for a year, gaining interest for the government.

07 November, 2006 10:22

 

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