timing of social security allowance

by Eileen
(Des Moines, IA)

Ok, please bear with me as I'm really not too bright about all this tax stuff, but here goes.....our church has always given us an allowance (just one big check) to help us pay the self-employed income tax/social security, and of course this amount has always been included in the wages, tips, compensation, etc. on the W2. Also, rather than making quarterly tax payments, my husband and I opt to take the small penalty and wait until tax time to pay the whole amount. Therefore, our church treasurer has not really gotten around to giving us this allowance check until the new tax year, instead of giving smaller allowances throughout the previous year. So, we were given a check of X amount in 2011, as our social security allowance, and this compensation had been reflected on the 2010 W2. Are we then supposed to be taxed on this amount AGAIN for the 2011 tax year, just because the actual check was handed to us in 2011, rather than in 2010 when it had already been taxed? Our new accountant seems to think so, and she drew up a W2 accordingly.