If my employer offers me a paycheck but I refuse to accept the check because the tax withholding on it is quite clearly incorrect, is the gross amount of that check taxable to me (because I *could have* taken it) or is it not yet taxable to me (because I have *not yet* accepted it)? Does the answer to that question affect my employer's deduction for the gross amount of the check? I'm pretty sure he's on the cash basis of accounting for tax purposes.
What makes the check taxable?
Jun 17, 2018
1 Replies
Yes. See "constructive receipt". There are circumstances under which the paycheck might be taxable to the employee and deductible to the employer in different years, but it is rare.
-- Arthur L. Rubin Brea, CA
Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required