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ClickBank 1099 - First Payment for 2012 is included in last year's total

by Jeff Hollyhand
9 replies
I just got my 1099 from Clickbank for 2011

They included the 2012-01-04 payment (for the period ending 2011-12-21) in the total.
They did not do it that way last year - My 2011-01-05 payment is also in this year's total.

No big deal.
I know they're a good company but I don't think that payment is supposed to be included in 2011 total.
I will remember to check next year and make sure that payment is not included again in the 1099 for 2012.

I thought someone that has been getting a 1099 from ClickBank longer than me might have some feedback (knowledge) on this.
#1099 #2012 #clickbank #included #payment #total #year
  • Profile picture of the author Istvan Horvath
    Accountants will say the amount should be calculated into the 2011 income because it is money EARNED in 2011 and that's what counts... not when you received it!
    It doesn't matter even if you receive it in March - it is still money earned in 2011 and it should be in your 2011 income report.
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    • Profile picture of the author GlobalTrader
      The 1099 is what CB has reported to the IRS as your earnings for 2011 under your social security number or TIN. This is the amount that the IRS will be expecting to see on your tax return.

      Most larger business use software that will be accurate in this reporting but it is still worth your time checking to be sure it is not....it is generally the smaller companies that the overlap reporting seems to "sometimes" happen, at least from my experience.
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      • Profile picture of the author Daniel Evans
        I only regard money as earned when I receive it...
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        • Profile picture of the author FredJones
          Originally Posted by Daniel Evans View Post

          I only regard money as earned when I receive it...
          -- Which is why, you are not an accountant but a marketer


          Well, I had thought the same (and I am based in India) when I had started, until my accountant informed me that the money is earned when I MAKE the transaction, not when I am paid for it, and have to pay tax accordingly. And if something is refunded in the next financial year then I claim a tax deduction in the next year.

          So USA seems to have the same model as India - well, in other words, the taxation model seems to be more international.
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          • Profile picture of the author Daniel Evans
            Originally Posted by FredJones View Post


            Well, I had thought the same (and I am based in India) when I had started, until my accountant informed me that the money is earned when I MAKE the transaction, not when I am paid for it, and have to pay tax accordingly. And if something is refunded in the next financial year then I claim a tax deduction in the next year.

            So USA seems to have the same model as India - well, in other words, the taxation model seems to be more international.

            I'd question the situation with these points:


            In this case, you dont make the transaction.

            The transaction is between the payment provider and the customer.

            The transaction which counts is between the payment provider and you.

            The payment provider is the intermediate and the transaction as a whole is done when all parts of the equation have been completed.

            Transact

            verb (used with object) 1. to carry on or conduct (business, negotiations, activities, etc.) to a conclusion or settlement.


            The settlement and conclusion is the product / service is provided and the money is in your posession, otherwise there has been no exchange made and there are no reflective earnings.
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  • Profile picture of the author Rus Sells
    Some of the advice here isn't completely accurate.

    Most likely clickbank and as well paypal are using the cash method of accounting which basically means. Its not earned until it hits your back account.

    So with clickbank if you had 10k in commissions coming to you for the month of December 2011 but you didn't actually see the money until Jan of 2012 its income for 2012 not 2011.
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    • Profile picture of the author GlobalTrader
      Originally Posted by Rus Sells View Post

      Some of the advice here isn't completely accurate.

      Most likely clickbank and as well paypal are using the cash method of accounting which basically means. Its not earned until it hits your back account.

      So with clickbank if you had 10k in commissions coming to you for the month of December 2011 but you didn't actually see the money until Jan of 2012 its income for 2012 not 2011.
      If CB reports the 10k on the 1099-misc they submit to the IRS as being paid out by them in 2011, are you willing to report or 'not' report it on your 2011 return? I guess it is up to you but a few years back I need to hire a CPA due to some investment paperwork and I left him do the entire return for me and he suggested that I pay the tax on the 1099 income as it was reported for the year it was reported even though I may not have received the funds until sometime in January.

      It makes for a few extra calculations at tax time for me but this guy was a licensed CPA and I paid him about $60 an hour so I take his word for it. So I am just passing along what has been provided to me by a professional.
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  • Profile picture of the author Jeff Hollyhand
    Thanks for the replies.

    It just struck me funny that earnings for the last 2 weeks of December 2010 (check in January 2011) and earnings for the last 2 weeks of December 2011 (check in January 2012) were both included in the 2011 total.

    I did not keep good enough records for CB in 2010 but I will check next year to make sure earnings for December 2011 (check in January 2012) are not included again in the 2012 total.

    I thought a few old-heads (that have been getting 1099s from CB for several years) might be getting there 1099s from Clickbank about this time also and may have noticed something different this year.

    If it is just me, I may have missed up in my own bookkeeping.
    =================================================
    Quick Note

    I know my 2010 Amazon 1099 included December 2009 earnings (check in 2010) and not December 2010 earnings (check in 2011). I have not received the 2011 one from them, yet.

    Thanks again for all the comments
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  • Profile picture of the author bhuff85
    I still have yet to get my 1099 from Clickbank. Anyone else out there finding it delayed?
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