Missing Form -1099

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I earned $1,000 from Rover (the dog walking service) in 2019, but I did not get a Form-1099-Misc from them. When I reached out to them, they told me "I will not be receiving a Form 1099 for 2019 because I did not withdraw over $600 via check during 2019". They even have this as an explanation on their website.

They are correct, I did not withdraw the money in 2019. I do plan to withdraw it in 2020. However, the IRC applies the concept of constructive receipt to cash basis taxpayers, which means I must report the $1,000 as income in 2019 since that is when I earned it. This is what I plan to do.

If I report the income in 2019, and Rover reports it 2020, the IRS will see there is a mismatch in reporting both in 2019 and 2020. I am concerned this will create a problem for me when I file my 2020 taxes, since the IRS will get a 2020 Form 1099-Misc from Rover reporting $1,000 of income, but I will not be reporting any income in 2020 because I reported it in 2019.

Do you have any suggestions on when I should actually report this income (2019 or 2020)? If your answer is 2019, then how do I handle the 2020 mismatch?

Also, is Rover correct in telling me they do not need to issue a 2019 Form 1099-Misc to me because I did not withdraw over $600 via check in 2019, even though I earned it in 2019?

DavidD66Answer

Alumni - Intuit

Since Rover didn't make a cash payment to you of $600 or more they are not required to send you a Form 1099-MISC. If you had the ability to "withdraw" the funds from Rover in 2019 it would be income in 2019. That said, given the amount and the fact that you didn't receive a Form 1099-MISC, I think you would be fine waiting until 2020 to report it if that's how you want to handle it. If you report as income in 2019 and then receive a 1099-MISC for it in 2020, you can enter a Misc expense on your Schedule C for the same amount, and that will offset the revenue.

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DavidD66Answer

Alumni - Intuit

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Anonymous

Thanks David. That's a good answer.

But, I have to say, I am surprised that Rover doesn't have to report the payment until it becomes a "cash payment".

I never heard of such a thing, and I can't find support for that in any IRS documents.

VictoriaD75

Alumni - Intuit

It is not so much about the form of payment as it is the dollar threshold. They do not have to issue you a document until they have paid $600 or more. That does not preclude you from reporting the income. You must report income from all sources derived regardless of amount.

Form 1099-MISC

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