Get your taxes done using TurboTax
You do not have to report income in the tax year (2021) if it was actually received in the next tax year (2022), regardless of the date on the check or deposit. Keep accurate records so that you will remember to include that income in the following year. Keep the receipt/deposit records with your tax file should you need then later.
If your 1099-NEC/MISC includes the payment you can reduce that amount by one of two ways. If you are a business reporting income on Schedule C, you can enter the income from the business without entering the actually 1099 form. This will take care of the reporting the income in the appropriate tax year of 'constructive receipt' (IRS term).
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Constructive receipt. Income is constructively received when an amount is credited to your account or made available to you without restriction. You do not need to have possession of it. If you authorize someone to be your agent and receive income for you, you are considered to have received it when your agent receives it. Income is not constructively received if your control of its receipt is subject to substantial restrictions or limitations.
See the image below for the selection of the type of income.
