@JudiCov wrote:
Won't I need to back up the expense with a receipt? And then how will I report the income for 2024? Thanks for the advice!
You should always report your actual income and expenses from your own accurate records, even if you don't get tax paperwork from your customers or clients. In 2024, just report the extra income. For 2023, create an expense to offset the income. If you are audited (unlikely) you can show by a PNL, bank statements or other records that even though the 1099 indicates payment in 2023, you did not receive the income until 2024.
This is not an uncommon occurrence. For example, if the client puts a check in the mailbox on December 31 (or starts and electronic transfer) and you don't receive it until January 3, it is a 2023 expense for them but 2024 income for you. (However, if they mail a check on December 26, and it is delivered to your mailbox on December 30, but you don't check your mail until January, it is 2023 income for you because you constructively received it in 2023.)
