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New Member
posted Jun 4, 2019 8:54:56 PM

I am self- employed and have invoiced a client but they have yet to pay me for the services I provided in November and December. Do I exclude this from my 2016 taxes?

Do I exclude this from my taxes completely? If not, how do I report it?

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1 Best answer
Level 13
Jun 4, 2019 8:54:58 PM

If you are a "cash basis" taxpayer - which most people are - then the act of "billing" is not reportable income to you.  It's the act of actually getting paid that creates reportable income.  Assuming you are a cash basis taxpayer you do not include the billed but unpaid income in your 2016 income tax return.

Tom Young

4 Replies
Level 13
Jun 4, 2019 8:54:58 PM

If you are a "cash basis" taxpayer - which most people are - then the act of "billing" is not reportable income to you.  It's the act of actually getting paid that creates reportable income.  Assuming you are a cash basis taxpayer you do not include the billed but unpaid income in your 2016 income tax return.

Tom Young

New Member
Jun 4, 2019 8:54:59 PM

So do I include the unpaid income in my taxes at all?

Level 13
Jun 4, 2019 8:55:01 PM

Not in 2016.  If you get paid in 2017 that's when you report the income ASSUMING YOU'RE A CASH BASIS TAXPAYER.  And if you never get paid then you never report the income.

New Member
Jun 4, 2019 8:55:02 PM

Ok great thank you!