Payment that didn't post my account until following year

[themadanimator]

A 1099 I received includes a direct deposit the payer claims to have made on 12/29/18 that didn't post to my bank account until 1/3/19. Now there's a discrepancy on the 1099 between what the payer says they paid me in 2018 and what I actually received. How can I handle this?

[DDollar · Accepted solution]

If you want to report the income as received in 2019 instead of 2018, go ahead and include in your 2018 revenue, then create a "Miscellaneous Expense" for Income included on 1099, not received till 2019 for the amount of the payment.  The two will net to zero and you can then claim the income on your 2019 tax return.  Or you can just include it on 2018 and have a discrepancy.

[themadanimator]

Thank you, that's very helpful.

[Lisa995]

Don't forget to add it back to the 2019 income, leave yourself a big sticky note somewhere!