I am a sole proprietor and use the cash accounting method, and I am confused about what tax year to send a 1099-MISC to an independent contractor

[dsercu]

I had an independent contractor provide service for me on December 31st, 2018 and I gave him a check that day for over the 1099-MISC reporting limit of $600.  But the check did not post to my account until January 2019.  Since I use the cash accounting method, I'm confused about what tax year I should send him the 1099-MISC for - should I send it for the year he provided the service (2018) or the year the check cleared (2019)? 

[Coleen3 · Accepted solution]

It doesn't matter when the check posted or even when he received it. You paid for the service on 12/31/18 so it is a 2018 expense to you and income to him.

[dsercu]

But with the cash accounting method, doesn't it technically only become an expense in the tax year that the money leaves my account?  

[Coleen3]

No. Even if you were to charge a credit card on 12/31, you would not have actually "paid". The charge is considered the payment. You have no control over what happens after you write the check. If that were the case and you mailed it in November but it didn't show up as cashed until February, that would be a disaster.

[dsercu]

Got it, thanks!