I earned $1,000 from Rover (the dog walking service) in 2019, but I did not get a Form-1099-Misc from them. When I reached out to them, they told me "I will not be receiving a Form 1099 for 2019 because I did not withdraw over $600 via check during 2019". They even have this as an explanation on their website.
They are correct, I did not withdraw the money in 2019. I do plan to withdraw it in 2020. However, the IRC applies the concept of constructive receipt to cash basis taxpayers, which means I must report the $1,000 as income in 2019 since that is when I earned it. This is what I plan to do.
If I report the income in 2019, and Rover reports it 2020, the IRS will see there is a mismatch in reporting both in 2019 and 2020. I am concerned this will create a problem for me when I file my 2020 taxes, since the IRS will get a 2020 Form 1099-Misc from Rover reporting $1,000 of income, but I will not be reporting any income in 2020 because I reported it in 2019.
Do you have any suggestions on when I should actually report this income (2019 or 2020)? If your answer is 2019, then how do I handle the 2020 mismatch?
Also, is Rover correct in telling me they do not need to issue a 2019 Form 1099-Misc to me because I did not withdraw over $600 via check in 2019, even though I earned it in 2019?
