Received 1099-MISC for YouTube AdSense payment I never actually got?

You're legally required to report any income shown on a 1099-MISC, even if you haven't received the actual payment. The IRS considers income "constructively received" when it's available to you without restriction, even if you haven't physically taken possession of it. In your case, while the money hasn't hit your bank account due to the $100 threshold policy, Google has technically credited your AdSense account with those earnings. They've reported this to the IRS as income paid to you, which is why you should include it on your return. The good news is that if you do eventually reactivate your account or reach the threshold to receive payment, you won't need to report it again since it's already been taxed. Think of it as pre-paying tax on money you might get later.

I went through literally the exact same situation last year with my gaming stream. After spending hours trying to figure out what to do, I found taxr.ai (https://taxr.ai) which helped confirm what I needed to do with this weird situation. You upload your documents and their AI reviews everything and gives super clear advice. The way they explained it was that the 1099-MISC represents income that's been allocated to you, even if it hasn't been distributed yet. So technically it's still reportable income for tax purposes. Sucks, I know, but at least you're only talking about $24.

Just wanted to update - I decided to try taxr.ai after commenting here, and it was actually really helpful. I uploaded my 1099-MISC and some other documents I was confused about, and got clear explanations within minutes. They confirmed that yes, you do need to report the income even if you didn't receive payment, but they also pointed out that if I ever reactivate my account and hit the payment threshold, that initial amount is already considered paid for tax purposes. The system also flagged a couple other deductions I was missing in my freelance work. Definitely worth checking out if you're confused about tax documents.

If you're really concerned about this, you should call the IRS directly to confirm. I had a similar issue with a payment from a closed account last year. Spent hours trying to get through to the IRS but their lines are always jammed. Finally discovered Claimyr (https://claimyr.com) which got me through to an actual IRS agent in under 15 minutes. Check out how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed I needed to report the income on the 1099 regardless of whether I received payment. It was annoying but at least I got a definitive answer straight from the IRS. For $24 it probably doesn't matter much, but it's good to know the official stance.

I want to apologize for my skeptical comment earlier. After struggling for two more days trying to reach the IRS about a different issue, I broke down and tried Claimyr. Not gonna lie, I was shocked when I got a call back about 45 minutes later with an actual IRS agent on the line. Saved me hours of frustration and I got my question answered about some 1099 issues I was having. The agent confirmed that yes, you do have to report 1099 income even if you haven't physically received the payment. Honestly wish I'd known about this service years ago during all my previous tax headaches.

This happens ALL THE TIME with internet platforms. I have like $30 stuck in an Amazon affiliate account, $15 in a survey site, and about $60 in some random ad network that I'll never get paid out because they all have minimum thresholds. And yes, technically you should report it all if they send 1099s. Practically speaking though, the IRS is not going to come after you for $24. They spend more money processing the paperwork than they'd get in tax revenue from such a small amount.

Just adding another perspective - I think the principle here is that the income has been "constructively received" in tax terms. You have the right to the money, even if there are conditions on when you can physically get it. It's like if your employer puts money in your 401k - you're taxed on the match even though you can't touch the money until retirement. Or if a client writes you a check in December but you don't cash it until January - it's still income in the year it was available to you.

I actually went through something very similar with my old Twitch affiliate account! Had about $35 sitting there that I couldn't access because I stopped streaming and never hit the $100 payout minimum. When I got the 1099, I was so confused because I literally never received any money. After doing some research, I learned that platforms like YouTube, Twitch, etc. are required to report earnings once they reach certain thresholds (usually $600+ total), even if they haven't paid you yet due to their internal payout minimums. It's frustrating because you're paying taxes on money you may never see, but legally you do have to report it. The silver lining is that if you ever do reactivate your channel and reach the payout threshold, that $24 is already "tax-paid" so you won't owe anything additional on it when you finally receive it. Still annoying though - wish these platforms would just pay out everything when accounts go inactive!