topic How do I use Turbotax to allow for revenue recognition outlined in IRS Procedure 2004-34?? I have been provided a 1099 that overstates my income. I use accruals. in Get your taxes done using TurboTax

How do I use Turbotax to allow for revenue recognition outlined in IRS Procedure 2004-34?? I have been provided a 1099 that overstates my income. I use accruals.

michael-enervold — Mon, 03 Jun 2019 18:49:33 GMT

First, you will need to enter the 1099-MISC form on your...

KittyM — Mon, 03 Jun 2019 18:49:34 GMT

First, you will need to enter the 1099-MISC form on your tax return, After you have entered the 1099, you will be returned to the Here's your work info page. Scroll down and click the button on the left titled Add income for this work. Then take these steps:

On the page Let's enter the income for your [Name] work, choose the second radio button Other self-employed income. Includes 1099-K, cash, and checks.
On the next page Tell us about other self-employed income for your [Name] work, enter something along the lines of "Adjustment for income reported, Rev. Proc. 2004-34" in the box labeled "Type of income" and enter the amount of money you did not receive as a negative number.
This will adjust your income to your actual earnings, as opposed to what the issuers say they have paid you.

If you are deferring income to 2019, don't forget to include it on your 2019 return. Also, keep your documentation to prove your adjustment in your 2018 tax file.

Thank you!

michael-enervold — Mon, 03 Jun 2019 18:49:35 GMT

Thank you!

My pleasure to help!

KittyM — Mon, 03 Jun 2019 18:49:38 GMT

My pleasure to help!

Re: First, you will need to enter the 1099-MISC form on your...

adk365 — Tue, 11 May 2021 23:10:05 GMT

I just tried using this solution, but it seems TurboTax no longer allows a negative number in those fields. Any suggestions?

Re: First, you will need to enter the 1099-MISC form on your...

VolvoGirl — Tue, 11 May 2021 23:24:24 GMT

Even in the past I would enter the full amount as income and then enter the amount reported in the previous year as an expense under Other Misc Exp.