Are December sales reported on the 1099 for 2019 or 2020?
Posted: Monday, December 02, 2019 10:47:47 AM
Not sure where to ask this question. Hoping someone will see it here. Just wondering if royalties earned during December count toward 2019 or 2020 income for tax purposes. Like, does the reporting follow the date you earned the royalty, or the date you receive the payment?
Posted: Monday, December 02, 2019 11:33:42 AM
It's the date it clears. The money is just theoretical until it actually clears.
Posted: Monday, December 02, 2019 12:20:28 PM
Susannah Keegan wrote:
It's the date it clears. The money is just theoretical until it actually clears.

Particularly since royalties will fluctuate on products sold outside the U.S.
Posted: Monday, December 02, 2019 1:59:38 PM
Susannah Keegan wrote:
It's the date it clears. The money is just theoretical until it actually clears.


Thanks! So basically December earnings are counted toward the next year since it takes them 30 days to clear. Is that right?
Posted: Monday, December 02, 2019 2:52:48 PM
ZingerBug wrote:
Susannah Keegan wrote:
It's the date it clears. The money is just theoretical until it actually clears.


Thanks! So basically December earnings are counted toward the next year since it takes them 30 days to clear. Is that right?

The money is theoretical until it's paid, per my accountant and the IRS.

Per the IRS, "File Form 1099-MISC for each person to whom you have paid during the year."

I don't issue 1099s for companies on money I owe them; I issue 1099s on money I've paid them.


Posted: Wednesday, December 04, 2019 11:47:55 AM
I work one day a week for a small business and handle payroll, so I'm the person who issues the 1099-Misc forms. 1099-Misc forms are issued for payments of $600 or more that were paid out during the calendar year. Due to the 30 day clearing period, money earned in December 2019 will not be paid until February 2020 and will not be included in your 2019 1099-Misc. October 2019 earnings will be the last earnings included in your 2019 1099-Misc form since they will be paid on 12/15/19.
Posted: Wednesday, December 04, 2019 12:07:40 PM
PawsitiveDesigns wrote:
I work one day a week for a small business and handle payroll, so I'm the person who issues the 1099-Misc forms. 1099-Misc forms are issued for payments of $600 or more that were paid out during the calendar year. Due to the 30 day clearing period, money earned in December 2019 will not be paid until February 2020 and will not be included in your 2019 1099-Misc. October 2019 earnings will be the last earnings included in your 2019 1099-Misc form since they will be paid on 12/15/19.


Good lord... that made my head spin (which is why I do art and not math!) But what I take from that is that it's the PAYMENT date that counts for tax purposes.
Posted: Wednesday, December 04, 2019 9:11:34 PM
ZingerBug wrote:
PawsitiveDesigns wrote:
I work one day a week for a small business and handle payroll, so I'm the person who issues the 1099-Misc forms. 1099-Misc forms are issued for payments of $600 or more that were paid out during the calendar year. Due to the 30 day clearing period, money earned in December 2019 will not be paid until February 2020 and will not be included in your 2019 1099-Misc. October 2019 earnings will be the last earnings included in your 2019 1099-Misc form since they will be paid on 12/15/19.


Good lord... that made my head spin (which is why I do art and not math!) But what I take from that is that it's the PAYMENT date that counts for tax purposes.


Sorry, I didn't mean to be confusing. But yes, since your 1099-Misc will be for money received in the calendar year 2019 and the last payment you get from Zazzle this year will be on December 15, 2019 (for the money you earned in October 2019), money earned after October 2019 will not be included in your 2019 1099-Misc form. I hope that makes sense.
Posted: Thursday, December 05, 2019 8:47:09 PM
PawsitiveDesigns wrote:

Sorry, I didn't mean to be confusing.


No no, you weren't the confusing part, my brain just has a hard time with numbers sometimes! Grin
Anyhow, thanks for your explanation. Very helpful!
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