How do I account for non-employee compensation paid on 12/31/17 (and reported on 2017 1099-MISC) but received in January 2018?

glpolo — Wed, 05 Jun 2019 22:25:08 GMT

Typically the entity paying sends a check December 31, which I then receive in January. Using cash based accounting, I report this income in the year in which I receive it, so my 1099-MISC reports more income than I received for the current tax year. How in TurboTax do I account for the discrepancy with what is reported on my 1099-MISC?

Well the issuer wants to deduct it on their 2017 return...

Critter — Wed, 05 Jun 2019 22:25:10 GMT

Well the issuer wants to deduct it on their 2017 return which is why they pull a fast one like this every year.... you could ask them to please send the check a bit earlier so you have it by the end of the year going forward but for now ... the simplest way to handle it (without IRS questions) is to just report the income on the 2017 Sch C as income and take a deduction under other expenses, call it something like "nominee recipient adjustment". But next tax year you must remember to add this as income since you are only kicking this down the road so to speak. This way it is a win win for all involved.

topic How do I account for non-employee compensation paid on 12/31/17 (and reported on 2017 1099-MISC) but received in January 2018? in Get your taxes done using TurboTax

How do I account for non-employee compensation paid on 12/31/17 (and reported on 2017 1099-MISC) but received in January 2018?

Well the issuer wants to deduct it on their 2017 return...