I have completed a fair amount of surveys over the past 18 months. I received a 1099 for 2015 for income. Lets say the number was 4000. I paid taxes on this already. I will be getting another 1099 for survey income for this year. The issue is that the company recently totaled my 2016 income to include some money from surveys completed in 2015. In these cases I did not receive the actual check until 2016. I've already paid taxes on this money but my 1099 likely will reflect the higher number. How should I proceed to make sure that I don't get double taxed on some of the money?
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Do you self-prepare your taxes or use a CPA? Your CPA will know what to do. Otherwise you will need to attach an explanation to your return and/or include a note on your schedule C. Report the full 1099. On the next line, show "Adjust for income reported on 2015 Form 1040 ($xxxx). Then report adjusted taxable income on the total income line of schedule C.Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087
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