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December 10, 2023
Question

If I invoice a client in 2023, and they pay me in 2024, which tax year does that go on?

  • December 10, 2023
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1 reply

December 10, 2023

Allow me to share some insights about tax year, michelle. 

 

If an invoice is issued in 2023 but paid in 2024, the tax year for that income would be 2024. The main reason is that the tax year is determined by what year you received the income. The income received should be taxed and reported by the same year, in this case, the year 2024. 

 

However, tax policies and standards are intricate. Thus, I recommend consulting a financial professional to ensure accurate tax filings.  

 

Moreover, here's an article about preparing to file your taxes with QuickBooks Self-Employed: QuickBooks Self-Employed annual tax guide

 

Comment below if you require further clarification about tax periods or tax filing. The Community forum is always here to assist. Keep safe!