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Previous year commission refunds
I am self-employed, and file as sole proprietor with my spouse, married filing jointly. My income is paid in advance as commission for the work I do. I use a cash accounting method. I received commissions in 2019, and included them as income in my 2019 return. But, due to covid, I had to refund many clients in 2020. How do I account for that, as my 1099-NEC only counts what I was paid in 2020, not the net of what I refunded. Where do I enter the refunds?
Thank you!
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March 31, 2021
5:10 PM