topic Income you gave back in Business & farm

Income you gave back

cypress4291 — Tue, 26 Nov 2024 18:10:37 GMT

If I gave income back (due to a customer duplicate payment), but not until the following year, do I enter it in the year I reported the income, or wait and enter it the following year?

Re: Income you gave back

Bsch4477 — Tue, 26 Nov 2024 21:27:28 GMT

Assuming you are on a cash basis you report income in the year received and expenses in the year paid.

Re: Income you gave back

AmeliesUncle — Wed, 27 Nov 2024 00:39:16 GMT

I don't think it is income and would not include that or the repayment anywhere.

The money never belonged to you. Just like a refundable deposit, it does not count as taxable income until it 'belongs' to you.