Payment and Meal Breakdown

[Baby Beluga]

I'm so sorry for all the questions!

My parents pay each Friday for the following week. Because of the holidays they paid on 12/23 for the week of 12/29 - 1/2.

Now, I received the money on 12/23/14 - so I should include that in my 2014 taxes, correct? Even though a portion of the tuition covered 1/2/15?

Also, for meals...since tuition covers meals do I count meals on 1/2/15 for this year?

Thank you!

[TomCopeland]

income

I'm so sorry for all the questions!

My parents pay each Friday for the following week. Because of the holidays they paid on 12/23 for the week of 12/29 - 1/2.

Now, I received the money on 12/23/14 - so I should include that in my 2014 taxes, correct? Even though a portion of the tuition covered 1/2/15?

Also, for meals...since tuition covers meals do I count meals on 1/2/15 for this year?

Thank you!

Report income in the year you receive it, not the year you earned it. The check you received on 12/23 is 2014 income. Deduct expenses in the year you incurred the expense. So, the meal you served on 1/2/15 is a 2015 expense if you use the standard meal allowance method. If you use the actual food cost method, deduct food costs in the year you paid for the food.

[Baby Beluga]

Thank you, Tom. What a wonderful resource you are to all of us on this site. Thank you, thank you, thank you!

[AmyKidsCo]

Thank you, Tom. What a wonderful resource you are to all of us on this site. Thank you, thank you, thank you!