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Level 1
posted Apr 17, 2023 8:23:36 PM

1099-K and the Accrual method

I use the Accrual method and have a 1099-K that has Payments from sales I made in Dec. 2021 but were Paid in Jan. 2022. 

My Sales for 2022 are $7,000 lower than the Payments on the 1099-K.

The payments are correct, but with the Accrual Method my income is from Sales during the calendar year and not Payments.

This year it seems to require that I input the actual 1099-K information.

There is a box you can check that says "This amount in box 1a is too high or includes some personal transactions.Learn more".  If I put in the $7000 in the box that says "Enter the amount that shouldn't be includedwhich is the difference in my Sales vs. Payments it seems to work, but is that the right way to do this?

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1 Best answer
Expert Alumni
Apr 17, 2023 8:59:04 PM

Yes, that is the correct way to make the adjustment to the amount reported on the 1099-K.

1 Replies
Expert Alumni
Apr 17, 2023 8:59:04 PM

Yes, that is the correct way to make the adjustment to the amount reported on the 1099-K.