topic When adding a 1099-NEC, what does it mean about the accounting method in Retirement tax questions

When adding a 1099-NEC, what does it mean about the accounting method

kley2245- — Wed, 11 Feb 2026 10:08:34 GMT

What does it mean about accounting method for the payer

Re: When adding a 1099-NEC, what does it mean about the accounting method

Bsch4477 — Wed, 17 Jul 2024 03:08:17 GMT

Your method is almost certainly cash which means that income is reported when received and expenses are reported when made.

Re: When adding a 1099-NEC, what does it mean about the accounting method

VolvoGirl — Wed, 17 Jul 2024 03:46:46 GMT

You probably use the cash method. The most common method is CASH. It means you report your income in the year you actually receive it and report your expenses in the year you actually pay them. See,

https://ttlc.intuit.com/community/business/help/what-is-the-cash-method-of-accounting/00/25658

The ACCRUAL method of accounting is often used by businesses that carry an inventory. You report your income in the year you earn it (not when you receive it) and report the expenses in the year you incur them (even if they aren't paid yet). See,

https://ttlc.intuit.com/community/business/help/what-is-the-accrual-method-of-accounting/00/26034