Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Aug 31, 2022 10:56:19 AM

pre payment more than 600

i received a pre payment for more than 600 but i cannot deliver before trhe end of the year, how do i declare this?

0 1 417
1 Replies
Employee Tax Expert
Aug 31, 2022 2:01:12 PM

Hi @Blakor65! This is a great question, and it all depends on whether you use the cash basis or accrual basis of accounting. Most small businesses use the cash basis, which means you report the income in the year you received it, even if you haven't technically earned it yet (ie. you haven't delivered).