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!