@MJul The reason why @ScruffyCurmudgeon describes the situation as "problematic" is as follows: When the company writes you the check, they have made the funds available to you on their end. If they are a cash-accounting customer, they would no doubt include this income as part of their 1099 that they issue to you. While it is true that you can't have access to it and therefore have "constructive receipt" of the income until you receive the check, the IRS hates inconsistency. So if the other company is deducting it as a cash-basis accounting, and you are cash basis also, then their default expectation is for you to include the income also. See the following IRS website for further information: Constructive receipt of income.
As a possible means to successfully claim this income as not having been constructively received, you could enter such as a negative adjustment to income (such as Line 2 on Schedule C, "Returns and Allowances") this year and then in 2022 include the income as "Other income" (Line 6). Keep documentation showing when you received the income, in case the IRS questions it. And don't forget to report it in 2022.
If you are an employee, however, and the income is reported on your W2, you will not be able to adjust it. And you can be sure your employer won't, either.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
