May I claim money earned but not received in 2012
I did work for a company in 2012, but will not receive money from them until 2013.
I think it would be beneficial for me to claim that income in 2012 because it is miscellaneous income (in additional to my regular fulltime job), and I have about as many expenses for this miscellaneous income as I have actual income.
Am I allowed to do this?
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If you didn't receive the money in 2012 or have constructive receipt you really can't claim the income. If the company is going to give you a 1099 for the work they aren't going to give you one until next year and if you claim it this year you will have a hard time explaining the income difference.
On the other hand if this isn't miscellaneous income, but rather self employment income and expenses you should be able to claim the expenses in 2012 and if you have a loss that would carry over to 2013.
Note it is possible to use an accrual basis if you are running a business (which would allow you to do this), but it is more complex than the cash accounting individual tax payers use.
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