BACKGROUND - THERE ARE NO QUESTIONS IN THIS SECTION:
I invoiced someone for $6,000 in May of 2016. He paid $2,000 in 2016 but demanded a bunch more work before he'd pay the rest. I tried to finish the project to his liking but ended up giving up on it in April 2017. I haven't tried too hard to pursue it because, at this point, cutting ties with this client is it's own reward. It's more trouble working with him than almost any amount of money I could sue him for. And he's a lawyer, anyway. So, there are some pretty nasty power dynamics.
I just found out about form 1099's for unpaid debts other than discharged student loans. And I'm wondering how this information relates to this situation.
So far, I've just filed my taxes as if that work never happened and was never invoiced because, until now, I didn't know I was supposed to do something else and I had assumed in 2016 that he would pay in 2017.
THE QUESTION:
Do I have to send him a 1099 for this? If so, in what tax year? If I was supposed to send it in 2016, what do I do about that?
I invoiced someone for $6,000 in May of 2016. He paid $2,000 in 2016 but demanded a bunch more work before he'd pay the rest. I tried to finish the project to his liking but ended up giving up on it in April 2017. I haven't tried too hard to pursue it because, at this point, cutting ties with this client is it's own reward. It's more trouble working with him than almost any amount of money I could sue him for. And he's a lawyer, anyway. So, there are some pretty nasty power dynamics.
I just found out about form 1099's for unpaid debts other than discharged student loans. And I'm wondering how this information relates to this situation.
So far, I've just filed my taxes as if that work never happened and was never invoiced because, until now, I didn't know I was supposed to do something else and I had assumed in 2016 that he would pay in 2017.
THE QUESTION:
Do I have to send him a 1099 for this? If so, in what tax year? If I was supposed to send it in 2016, what do I do about that?
Federal Taxes: Unpaid Invoices and 1099's
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