How do I use Quickbooks SE to determine taxes owed for 2020 income reported on a 1099-MISC that won't be deposited into my account until 2021 (December 2020 invoices)?

Hello @APB97114,

Thanks for reaching out to the Community. If the 1099-misc is dated 2020, you will report that income when you file your 2020 taxes. As far as how to handle the fact that you will not receive the funds until 2021, that would be something to ask you’d want to ask your accountant about, however, if it’s reported on a  2020 1099-misc form, you would report that on your 2020 tax return.  For reference, I’m including some great information on managing tax forms in QBSE: Get quarterly and annual tax information in QBSE

Feel free to let me know if you have any other questions or concerns. I’ll be around and I’m happy to help.

Thanks for the prompt reply, Monica.

Yes, I recognize that I will report that income on my 2020 return, but my question was more to how I can get the QBSE software to recognize that the deposit made into my checking account, which will be categorized as income, gets recognized as 2020 income and not 2021 income based on the deposit date.

Should I be entering these values in manually on the 31st of each month based on the invoices I am sending to clients rather than having the QBSE software identify and categorize transactions in my bank accounts and credit cards one deposits or transactions occur?  And if yes to the manual entries, should I then just exclude those transactions from QBSE once the deposits are made into my accounts and the software identifies them?  

There isn't an option to combine transactions from scanned receipts or manual entries with transactions that are identified from the bank/credit card accounts linked to my QBSE account. 

I'm trying to make sure what I'm transferring from QBSE when preparing my taxes in TurboTax is accurate for my 2020 income, as I will have several 2020 invoices that were issued in 2020 and recorded in 1099-MISC linked to 2020, but with deposits in 2021 that will be captured by the QBSE software based on the date of deposit, not date the invoice was issued.

Thank you again for your previous response.

Hello again, APB97114. 

I appreciate your prompt response and providing such detailed information. It gives me a helpful overview of the issue. 

You're right on manually entering those transactions for 31st, so this income reported on 2020. To manually enter it in QuickBooks Self-Employed (QBSE), here's how:

1. In the left menu, click Transactions. 
2. Tap Add transaction button. 
3. Enter the necessary information. 
4. Pick a category. 
5. Hit Save.

Once done, exclude the transaction showing in 2021. 

1. In the left menu, click Transactions. 
2. Locate the transaction and select to expand the view.
3. Tap the delete icon. 
4. Hit Apply.
5. Click Yes to confirm.

For future help, here's some resource to help you get ready during tax season: 

• QuickBooks Self-Employed annual tax guide
• Self-employed tax forms explained
• Send QuickBooks Self-Employed tax info to TurboTax Self-Employed or Live

Just let me know if you have any other concerns about your QBSE account, I'll be more than happy to help. Take care.