Hi - I had a similar question. One of my 1099 clients overpaid an invoice in 2022. I did not pay it back last year but am crediting their invoices in 2023 until it is paid. Here are answers to one of replies to the similar question:
If you need more help, we need to know all of the following.
- What kind of income was overpaid to you? Services provided by my company
- In what year did you receive the overpayment? 2022
- Did you, or will you, report the overpaid amount as income on your tax return for the year that you received it? The client reported it on my 2022 1099.
- In what year did you, or will you, pay it back? 2023
- What is the exact amount that you will pay back? $7,100.
