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April 13, 2025
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How can I claim money client did not pay owed to me under my self employment?

  • April 13, 2025
  • 2 replies
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I wasn't able to use the "bad debt" section here
    Best answer by SusanY1

    Since you never received the money, it shouldn't be in your overall revenue if you are a cash-basis taxpayer.  No additional adjustment is necessary aside from not showing the invoiced amount as income.  

    However, if you are an accrual-based taxpayer, and this income was reported in a prior tax year you may need to make an adjustment.  Let us know if this is the case for you.  

    2 replies

    VolvoGirl
    April 13, 2025

    Sorry you can't.  You can't deduct income you never received. You will just have less income to be taxed on. You take the loss by still deducting all your expenses but not your time or labor.

    SusanY1
    SusanY1Answer
    April 13, 2025

    Since you never received the money, it shouldn't be in your overall revenue if you are a cash-basis taxpayer.  No additional adjustment is necessary aside from not showing the invoiced amount as income.  

    However, if you are an accrual-based taxpayer, and this income was reported in a prior tax year you may need to make an adjustment.  Let us know if this is the case for you.  

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