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Level 1
posted Jan 11, 2024 1:31:10 PM

Do I report income when it's earned or when it's paid?

Hello, 

 

I am a 1099 contractor and completed some work in December 2023, but did not receive my check until January 2024. Do I report the income as part of 2023 taxable income, or wait until I do my 2024 taxes and report it as 2024 taxable income? Thank you. 

0 3 228
3 Replies
Level 15
Jan 11, 2024 1:40:39 PM

Assuming you are on a cash basis you report income when it is received. 

Level 1
Jan 11, 2024 1:43:31 PM

What does cash basis mean? i usually am paid via written check or payment app like Cash App/Apple Pay 

Level 15
Jan 11, 2024 2:44:29 PM

@TheShiflett wrote:

What does cash basis mean? i usually am paid via written check or payment app like Cash App/Apple Pay 

Cash basis does not refer to how you are paid. It's an accounting method. It means that you report income when you receive it and claim expenses when you pay them. Almost all individual taxpayers are cash basis.