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Business & farm
Only report the income you actually received in 2019. The $18K you were owed but never collected is not income for you. By not reporting it as income, you recognize that you "lost" that money.
This assumes you are a cash basis taxpayer. The mechanics for an accrual basis taxpayer are different, but you end up in the same place---you aren't taxed on income you never received.
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March 6, 2020
6:08 AM