Under the cash method of accounting,income is reported for the tax year in which payments are actually or constructively received.

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In the cash method of accounting, income is recognized when it is received or constructively received, meaning when it is made available to the taxpayer. This is different from the accrual method of accounting, where income is recognized when it is earned or when the obligation arises.

Under the Cash Method of Accounting,income Is Reported for the Tax