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Old 02-24-2015, 02:51 PM
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How to declare refunded income?

I am a graphic designer and I pay self-employment taxes. I received a 1099-MISC from a client in the amount of $1000 in 2014, but refunded the client in 2015 in the full amount due to a cancelled working relationship/termination of contract. My question is: do I still include this amount in my total income for 2014? Or is there a way to declare this, similar to 'bad debt'? I have tried googling this without success, so I sincerely appreciate a correct answer!



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Old 02-25-2015, 02:50 AM
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Quote:
Originally Posted by EmilyB View Post
I am a graphic designer and I pay self-employment taxes. I received a 1099-MISC from a client in the amount of $1000 in 2014, but refunded the client in 2015 in the full amount due to a cancelled working relationship/termination of contract. My question is: do I still include this amount in my total income for 2014? Or is there a way to declare this, similar to 'bad debt'? I have tried googling this without success, so I sincerely appreciate a correct answer!
I am a graphic designer and I pay self-employment taxes. I received a 1099-MISC from a client in the amount of $1000 in 2014, but refunded the client in 2015 in the full amount due to a cancelled working relationship/termination of contract. My question is: do I still include this amount in my total income for 2014?=========>>>>>>>>>no; you do not need to report the refunded 1099 income on return since the payer did not send a cop of 1099/1096 to the irs by march 31 2015.if the payer mistakenly sene a copy of 1099/1096( I don not think he’d do it), thenyou need to report $1k on Sch C and deduct the same amount as other expenses on Sch C also.

Or is there a way to declare this, similar to 'bad debt'? I have tried googling this without success, so I sincerely appreciate a correct answer!=========>>>>>>>as mentioned above ; it is not bad debt.no worry.



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