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November 26, 2024
Question

Income you gave back

  • November 26, 2024
  • 2 replies
  • 0 views

If I gave income back (due to a customer duplicate payment), but not until the following year, do I enter it in the year I reported the income, or wait and enter it the following year?

    2 replies

    Employee
    November 26, 2024

    Assuming you are on a cash basis you report income in the year received and expenses in the year paid. 

    November 27, 2024

    I don't think it is income and would not include that or the repayment anywhere.

     

    The money never belonged to you.  Just like a refundable deposit, it does not count as taxable income until it 'belongs' to you.