Hi all,
I'm getting ready to file taxes for my sole proprietorship (first year doing business solo) and I have a question about claiming the proper income amount.
So let's say, I have a dated invoice on Dec. 15 2010 that doesn't get paid until early January 2011. Do I claim that as income for 2010 or will I have to claim it as 2011 income next tax season? I believe my client has sent me a 1099 not including that amount from the December invoice.
I just want to make sure this is the correct way to proceed going forward incase it happens again with other clients.
Thanks in advance.
I'm getting ready to file taxes for my sole proprietorship (first year doing business solo) and I have a question about claiming the proper income amount.
So let's say, I have a dated invoice on Dec. 15 2010 that doesn't get paid until early January 2011. Do I claim that as income for 2010 or will I have to claim it as 2011 income next tax season? I believe my client has sent me a 1099 not including that amount from the December invoice.
I just want to make sure this is the correct way to proceed going forward incase it happens again with other clients.
Thanks in advance.