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December 29, 2024
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Do I get a 1099 when I started a new job as a contractor in Dec and paid in Jan?

  • December 29, 2024
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I’m self-employed and began working as a contractor in December, 2024. Client is supposed to pay me in January, 2025 for my December's work. Do I need to report this income for 2024 or 2025?
    Best answer by rjs

    You are almost certainly a cash-basis taxpayer and use the cash accounting method for your business. That means that you report income when you actually receive it. So if you receive the payment in 2025 you report it on your 2025 tax return. The client should issue a 1099-NEC for 2025.

     

    1 reply

    rjs
    rjsAnswer
    Employee
    December 29, 2024

    You are almost certainly a cash-basis taxpayer and use the cash accounting method for your business. That means that you report income when you actually receive it. So if you receive the payment in 2025 you report it on your 2025 tax return. The client should issue a 1099-NEC for 2025.