Urgent Help Needed

[woeisme]

I'm with TooMuchCredit, I don't think it matters which month he gets the bonus. There's a 6-month lookback, the only way it matters which month the bonus was for is if we were talking about filing in August or something, if you are filing in the next few days, what does it matter? Unless I'm missing something.... which wouldn't be unheard of, I just don't get why it makes any difference.

[justbroke]

What is the date on the check?

Now, THAT, is the question to ask!

[Ifonly]

Individuals earn money based on the theory of "constructive receipt". Therefore, it doesn't matter when you earned it, it matters when it was made payable to you. This is "cash basis" accounting - this is how all individuals file their tax returns, etc. If the check was dated March, the income is recognized by you in March.

Perfect example, if you get paid by your employer on January 2 for the two weeks prior, it doesn't show up in the prior year's W-2, right?

This is basic accounting law - I doubt highly that BK law changes the way income is recognized by the IRS.

[catleg]

Having said all that, if the lawyer puts it on the schedules that way and nobody challenges it, then that's how it goes down in history. So if that helps you, you could always let it slide and hope for the best, after all, part of the burden imposed on the lawyers by BAPCPA was to certify the accuracy of the clients statements. I'm not saying to lie or cheat but if your lawyer makes an honest mistake and it helps you and it never gets challenged, well, chalk one up for our side.

[lrprn]

If you haven't filed yet I don't think it matters when you received that bonus as the 6 month window assuming you file tomorrow would be October 1 thru March 31.

Actually if Coop files on March 31, the lookback period is September 1 through February 28.

The lookback is full calendar months. Any day you file during a given month - even on the last day of the month - kicks that month out of the calculation. This is why Coop needs to file today (March 31). He doesn't want to count March because then he would have to add in the bonus he received this month when his six-month income figure is calculated.

[coopersmydog]

The attorney will not budge on the income. So I'll have no choice by to file 13 now. I did find case law on both sides of the argument. So I guess it's not cut and dry.

[EricaCallaha]

How bad is the 13 going to be for you?

[coopersmydog]

Total payment of roughly 1000. About 550 is for my car payments. Basically that income counting in february cost me $25,000 over 5 years.

[EricaCallaha]

That sucks. Were you hoping for a 7?

[coopersmydog]

Yup

[coopersmydog]

Now, THAT, is the question to ask!

Date on the check stub was 3/6. It also referenced the pay period ending 2/25.

[justbroke]

Date on the check stub was 3/6. It also referenced the pay period ending 2/25.

Well, you go by the payment date on the check. That's your constructive receipt.