Assuming you use the Cash Method of accounting (as opposed to the Accrual Method), you will report it on your 2016 tax return. The Cash Method is most commonly used and it simply means that you report income and expenses when received/paid.
Also, since you received the Form 1099-MISC, the IRS will expect to see it on your 2016 tax return.
[edited 4/8/2017]
