I received 2021 income, dated 2021, in 2022. It will show up on my 1099 for 2021. I use cash method. How do I report this?

[Stevos555]

If the person wired or cut the check in 2021, you received in 2022, the issuance of 1099 in 2021 makes this a taxable event for you in 2021 unless you discuss this with the person issuing the 1099. Since IRS will receive a 1099 record of 2021 earnings, its going to be a nightmare for you to claim this as 2022 income and not 2021.It will be easier to seek a correction for the 1099 from your payor.

[JamesG1]

You want to report the full amount of the 1099-NEC (?) on your 2021 Federal 1040 tax return.  Anything different will give the tax authorities reason to start asking questions.

The IRS generally agrees with the information on the 1099's that they receive unless you can present a very compelling argument to the contrary.

@lynnpovinelli

[Mike9241]

the payor probably will not want to change the 1099. you see then they'll have a problem deducting it in 2021 if they show it as a 2022 payment. 

[jdkeenan1]

I've seen conflicting advice on this issue. 

I've seen older posts indicating there was a way in TT to handle this, but perhaps no more.

https://ttlc.intuit.com/community/taxes/discussion/what-should-i-put-for-accounting-method-on-my-109...

None of my clients have ever agreed to "correct" the 1099 because they are using the accrual method, and I'm using the cash method.

[fanfare]

This is really a non-problem.

Report the income and the tax document on 2021.

Use the funds you just got to pay your income taxes and/or estimated tax for 2022.

[Stevos555]

The payor only needs to issue 1099 for payments made - not accrued services. If the payor made the payment (check in transit), you have constructive receipt in 2021. If however, they never cut the check until 2022, they cannot issue a 1099 for 2021.