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?
united-statestag. If you receive money as a contractor from a company, it goes on Schedule C as self-employment income and expenses incurred in the production of that income get deducted there. You also get to pay the employee's share as well as the employer's share of Social Security and Medicare taxes on that income. It is not miscellaneous income to you that gets reported on the "Other Income" line on Form 1040. Note that there are no deductions allowed against miscellaneous income.