For which year do I report income?

by Kathy Johnson, CPA

I’m self-employed. A company for which I did work in 2017 sent me a payment check I received on Dec. 31, 2017. I cashed it on Jan. 3, 2018. Do I therefore report it on my 2018 tax return? The company sent me a 1099 for 2017 that included the payment.

The check was issued in 2017; therefore, it is 2017 income.  The company was correct to issue a 1099 for 2017.

Kathy Johnson is a San Bernardino CPA and owner of CPA Forensics Plus. You can reach her at (909) 889-8819 or kathy@cpaforensicsplus.com.

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