wrong amount in 1099 NEc

Forum|Forum|3 years ago
April 15, 2023
1 reply
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my business uses a cash not accrual basis for taxes. I received a 1099 NEC from one company that includes money that I did not receive until 2023. The company cut the check on December 28, 2022 but I did not receive until January 2023 and deposited in 2023 into my business account. Am I required to include this additional amount in my 2022 tax return even though I didn't receive it until 2023 since the 1099 has this amount included it on it? If not how do I dispute the amount?

DawnC

Employee

You can report it now or next year. If you wait until next year, you can do nothing on this return OR you can enter it and then enter a negative entry to offset it. Either way, keep detailed records in case of an inquiry. Technically, it is 2023 income for you, but since you have the 2022 tax form, you can include it now if you prefer, but you are not required to report 2022 income you received in 2023 as a cash basis taxpayer.

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