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1099 Reporting When a Contractor Delays Receipt of Their Payment
April 20, 2026
Q. If someone chooses not to accept their full payment and defer it to another year, should the contractual amount be reflected on the 1099?
A.
(Answered by IOFM's third-party tax expert)
Yes, if the money was available for them and they willfully chose to not receive it until later, it is still income to them in the year it becomes available to them. There is the concept of a deferred compensation plan. However, while this typically applies to employees, it can sometimes apply to contractors.…
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