Year-end invoice — which year the income counts in

Which year a year-end invoice counts in

RealRateCalc team · checked 9 Oct 2026

On the cash method, you count income in the year you receive it. Constructive receipt means the money is credited to your account or set aside for you so you can draw on it without a substantial limit. Estimate, not tax advice.

Updated 2026-10-09

Paid January 9, 2027: counts in 2027. Estimate, not tax advice.

Example: $3,000 invoice dated December 10, 2026, terms Net 30, due January 9, 2027. Paid December 28, 2026, it counts in 2026. Paid on the due date, it counts in 2027.

Payment date

Method

Cash, constructive receipt, accrual

IRS Publication 538 (revised January 2022, reviewed 30 April 2026) describes constructive receipt: income is received when it is credited to your account or made available without a substantial limitation, even if you do not take possession of it.

Whether a balance still sitting on a payment platform is available without restriction is not decided on this page. Ask a tax professional before you treat a pending payout as received.

An accrual-method taxpayer reports the income when it is earned, which for this example is 2026 if the work was finished in December, even when the cash arrives in January.

Source: IRS Publication 538.

Also: quarterly estimated tax · 1099-NEC · holiday sale keep.

Which year does a December invoice count in?

On the cash method, income counts in the year you actually or constructively receive it. A $3,000 invoice dated December 10, due January 9, 2027, counts in 2027 if it is paid then, and in 2026 if it is paid on December 28. An accrual-method taxpayer reports the income when it is earned. This is an estimate, not tax advice.