Yes, the income can be reported on a Cash Basis. To report this in TurboTax, follow these steps. Be sure that the income reported in the next year is added next year in the same area, less common income.
To declare this income as Other Common Income from Form 1099-MISC:
- From the left menu, select Federal
- Wages & Income, Scroll down to Other Common Income
- Click Start by 1099-MISC
To subtract the portion not received until the next year and/or add the portion from the prior year received in the current year:
- From the left menu, select Federal
- Wages & Income scroll all the way down to Less Common Income and click Show More
- Select the last listed option for Miscellaneous Income 1099-A, 1099-C, click Start
- Next, select the last listed option Other Reportable Income
- Did you receive any other taxable income, click yes
- Other Taxable Income: Enter your description and the amount as a negative and click Continue and Done.
This will create a net 1099-MISC amount that is accurate for Cash Basis.
