If I billed my client on 12-20-07 for payment due on January 1st 2008. I got the payment in January and deposited it in January. Does it count as 2008 income? It wasn't on the 2007 1099 and its not on the 2008 1099. Looks like they cut the check on 12-31-07, but I didn't get it until 2008.