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Solved

1099 Received was for accrual method, I use cash method - How do I reconcile?

Forum|Forum|2 years ago
March 25, 2024
1 reply
0 views

A client sent me a 1099-NEC for 12 monthly invoices for year 2023. However, I actually received 2 payments from 2022 and 10 payments from 2023 in year 2023. The last 2 invoices from 2023 were actually paid in 2024.

My method is to count income when I actually received it in 2023.

The 1099 issued counted income earned in 2023, but not necessarily received

How do I resolve this? Do I ask the vendor for a new 1099? Her accountant said that's the way she does it.

TurboTax Home & Biz Windows

Best answer by DavidD66

Report the 1099-NEC as received and then make an income adjustment for the difference between what was reported on the 1099-NEC and what you actually received. For example, if the 1099-NEC was for $6,000 but you only received $5,200, add negative revenue of $(800) as a separate revenue item in the "General Income - Business Income not reported on other forms". Be sure to add the same amount to 2024 income.

Report the 1099-NEC as received and then make an income adjustment for the difference between what was reported on the 1099-NEC and what you actually received. For example, if the 1099-NEC was for $6,000 but you only received $5,200, add negative revenue of $(800) as a separate revenue item in the "General Income - Business Income not reported on other forms". Be sure to add the same amount to 2024 income.

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Where can I enter this on TT Premier 2024? Can't find this screen.

Thank you!

Employee

The easiest way to find any section of TurboTax Desktop is to use the Search box or Show Topics in the TurboTax header.

If you need to adjust the amount reported on the 1099-NEC, enter a second 1099 with a negative amount that results in the correct amount of income.

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