1099 question

The portion earned in 2015 should be included on the 1099. It's just like a W-2 (from your job's salary/wages.) The purpose in the 1099s is to report income and withholding for the full tax year on your 2015 tax return.

Here is a short list of a few 1099 examples. Notice the types of income reported on them:
-1099R (retirement pensions and annuities)
-1099G (unemployment income and other state payments)
-1099INT (interest income)
-1099DIV (dividend income)
-1099MISC (miscellaneous income)

Tripin you're way off with all due respect and way overcomplicating this simple transaction . U need to know whether each taxpayer is accrual or cash. A contractor u are 1099 ing will almost always be a cash basis taxpayer and will include that income in the year paid. The payor will include the expense in the year paid as well unless they r an accrual basis taxpayer. 1099s are not typically if ever done on accrual basis. Iswang. Without knowing all the facts there are always exceptions. But based on what u provided 99.99 of the time that is 2016 income and expense

Tripin. No! Accountants have to argue to get the answer correct. Half of tax is interpretation. U need a good team to bounce ideas off. Don't be discouraged to post

W-2's also go by check date, so if you got paid on 1/7/16 for working the last week of December it will not be on your 2015 W-2. 1099's are always issued based on payment date, never on date earned. If the taxpayer files on an accrual basis it's on them to calculate the amount earned but not included on their 1099, conversely many prepayments made at year end can be deductible by the payer even if not earned by the payee. Important to know which prepayments qualify. Even if a prepayment is not deductible it still gets reported on a 1099.