turbo asks for 1099NEC info and that has gone to the fed and state. then it asks for 1099 misc and general income or 1099K, etc.
Accrual accounting says that income being held, in an iolta account mind you, is a liability, a payable and not income. WE are asked if we use accrual accounting. That money received is untouchable until needed. It's hardly income as i cannot use it to pay expenses, it must remain there until i use to perform a job then it is earned. Some of that may have to be given back. And it may not even pertain to the calendar year in which it was received. Therefore, my gross income is being vastly overstated. What gets me, there is no clear run down of this in turbo tax...it's like a whole industry's issue is missing from turbo tax. keep in mind, earning that income generates new expenses...so by claiming it as income without the expenses (as i have not yet earned it)...makes my taxes massive. Wow, I'm going to have to get an accountant next year...
