tax question | Personal Finance & Lifestyle | Yakezie Forums

I've got a tax question that I'm not really sure how to word to actually get an answer from search engines.

A lot of my online income has been coming from Fiverr. For work that was completed in November & December, funds were credited to my Fiverr account in December and I requested withdrawal to my PayPal account on December 31. I should be receiving the funds in my PayPal account this week (and then will transfer to my bank account to probably arrive there early next week.

So my question is does that income count towards 2013 or 2014?

For big companies, they would count it as 2013 because that is when it is earned (accrual accounting). In your case, though, it isn't any big deal to count it as January, as that is when the cash was received (cash basis accounting).

Yep, that is just simple cash accounting.  You don't count it until you actually receive it.  Since you can't use Fiverr as a bank account, then you shouldn't consider the balance as income.  

Eric – Narrow Bridge Finance said:

Speaking of taxes, got my 2014 stuff finished for all of my businesses, including Narrow Bridge. Big year over year gain! Woo hoo!

Congrats! I roughly tripped my revenue from 2012 to 2013.

I just did the preliminary tax basis and that bill is going to hurt. With more income comes more taxes!

While I didn't earn enough to warrant posting quarterly taxes, I always made sure that I deducted the appropriate percentage to put into a separate savings account. I did my preliminary analysis as well. I will be getting almost nothing back from the IRS, but I have a grand already in the bank waiting for me to spend! (on debt reduction, mostly)