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Level 1
posted Jun 1, 2019 10:26:29 AM

I billed in Jan'18 for work I did in Dec'17 but the company included it in my 2017 1099-MISC. Can I still use the cash method and exclude that amount from my 2017 taxes?

I'd like to be able to exclude that income from 2017 but am not sure if that will be a problem because it won't match with what the company for which I was consulting filed for my 1099-MISC. I just noticed that although my invoice date was January 2, 2018 and they appear to have cut the check on January 5, 2018, they back-dated the actual check itself to December 29, 2017. So if they're using the accrual method, do I need to do the same?

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1 Best answer
Level 1
Jun 1, 2019 10:26:29 AM

The company you have consulted for already issued you the 1099-MISC for work performed in 2017. The information was already reported to the IRS.  Therefore, the payment is recognized on their books as consulting expense paid in 2017. It's best to report it on your 2017 tax return. 

2 Replies
Level 1
Jun 1, 2019 10:26:29 AM

The company you have consulted for already issued you the 1099-MISC for work performed in 2017. The information was already reported to the IRS.  Therefore, the payment is recognized on their books as consulting expense paid in 2017. It's best to report it on your 2017 tax return. 

Level 1
Jun 1, 2019 10:26:31 AM

Ok, that's what I was afraid of. So would I still say I'm using the cash method and act as if I actually received the income in 2017 rather than 2018, since that's how they reported it?