You cannot include a 2016 1099-MISC form on your 2017 income tax returns. Most taxpayers who
receive income as an "independent contractor" are on a cash
basis. Cash Basis is when you report income and expenses based on when
they are received or paid. To file 2016 income tax return(s), click on How do I file a prior year tax return?
The cash method
.
The
cash method is the more commonly used method of accounting in small business.
Under the cash method, income
is not counted until cash (or a check) is actually received, and expenses
are not counted until they are actually paid.
The accrual method. Income is counted when the
sale occurs, and expenses are counted when you receive the goods or services. You don't have to wait until you see
the money, or actually pay money out of your checking account, to record a
transaction.
See IRS
Publication 334 Accounting Periods and Methods for
additional information.