In April 2019, Bertie, a calendar year cash basis taxpayer, had to pay the state of Michigan additional income tax for2018. Even though it relates to 2018, for Federal income tax purposes, the payment qualifies as a tax deduction for tax year 2019.

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For a cash basis taxpayer like Bertie, deductions are taken in the year they are paid, regardless of the tax year to which the payment applies. Therefore, the additional state income tax payment made in 2019 for the 2018 tax year is deductible on Bertie's 2019 Federal income tax return.

In April 2019, Bertie, a Calendar Year Cash Basis Taxpayer