I am independent contractor using cash basis. Due to end-of-year issues, a 1099-MISC does not match what I deposited. How do I handle this?

 
Hal_Al
Level 15

Get your taxes done using TurboTax

It depends on the details. Why did you use the word "deposited", instead of received.

Get your taxes done using TurboTax

I received a check at the end of 2016, but didn't deposit it until January 2017. With cash basis, my understanding income is counted at the time it is deposited in the bank. No?

Get your taxes done using TurboTax

Thank you very much, Hal_Al. My first year submitting as an independent contractor.
Hal_Al
Level 15

Get your taxes done using TurboTax

No; it goes by when you received the check. You had "constructive receipt".

To avoid a potential hassle with the IRS, you should report the income on your 2016 return.

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