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Level 1

For cash basis accounting, if customer sent a check at the end of 2015 and included it on 1099-misc, but we did not deposit it until 2016 began, how is that handled?

Is there a place in TT to enter some sort of adjustment to the reported amounts?

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Level 20

For cash basis accounting, if customer sent a check at the end of 2015 and included it on 1099-misc, but we did not deposit it until 2016 began, how is that handled?

Yes.  Include it in income and then I would put the amount on line 27a as a misc other expense like "Income not received in 2015".

When did you get the check?  Was it before Dec 31 and just not deposited until January?  Then it should still go on 2015 return.

Go to Business tab- then Continue
Choose Jump to Full List -or I'll choose what I work on

Then…..
Business Income and Expenses - Click the Start or Update button

Then click EDIT by your business name and the next screen should be a list of  topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Under Business Expenses, Click Start or Update by Other common business expenses
You should see the list of expenses and amounts you entered.
Then click the start or update button by the expense you want to add or edit.

Other Miscellaneous Expenses is the 16th item under Expenses - Click the Start or Update button
2 Replies
Level 20

For cash basis accounting, if customer sent a check at the end of 2015 and included it on 1099-misc, but we did not deposit it until 2016 began, how is that handled?

Yes.  Include it in income and then I would put the amount on line 27a as a misc other expense like "Income not received in 2015".

When did you get the check?  Was it before Dec 31 and just not deposited until January?  Then it should still go on 2015 return.

Go to Business tab- then Continue
Choose Jump to Full List -or I'll choose what I work on

Then…..
Business Income and Expenses - Click the Start or Update button

Then click EDIT by your business name and the next screen should be a list of  topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Under Business Expenses, Click Start or Update by Other common business expenses
You should see the list of expenses and amounts you entered.
Then click the start or update button by the expense you want to add or edit.

Other Miscellaneous Expenses is the 16th item under Expenses - Click the Start or Update button
Level 1

For cash basis accounting, if customer sent a check at the end of 2015 and included it on 1099-misc, but we did not deposit it until 2016 began, how is that handled?

Thank you, this was helpful.

I actually have a few payments to consider, and the postmarks range over the last couple weeks of the year. Our checks come to our PO Box, and some things piled up at the post office over the Christmas Holiday. We went to the PO Box after December ended.

So with no way of knowing for sure when it arrived at the post office box, would you recommend making an assumption of the arrival date based on the postmark, or would it be safe to simply state that we didn't receive the payments until the year changed? The amounts are substantial enough that they will impact our account, and I would prefer to post the payments in 2016, but only if it is safe to do of course.

Thanks again.