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Level 1
posted Mar 15, 2025 10:18:19 PM

bad debt for services provided, how to report it in my tax return

 

I am self employed and I provide services. I have outstanding invoices from clients, who have not paid me and they might never do. How do I claim the unpaid services in my taxes?

 

What would it happen if I claim it as a bad debt in my taxes and down the road I get paid part or all of what they owe me?

 

Thank you

0 2 924
1 Best answer
Level 15
Mar 15, 2025 10:45:15 PM

if you are using the cash basis of accounting you never reported those items as income so you are not entitled to any deduction. 

2 Replies
Level 15
Mar 15, 2025 10:45:15 PM

if you are using the cash basis of accounting you never reported those items as income so you are not entitled to any deduction. 

Level 1
Mar 16, 2025 9:31:17 AM

thank you for the information