In January 2017,Pam,a calendar year cash basis taxpayer,made an estimated state income tax payment for 2016.The payment is deductible in 2016.

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According to IRS rules, estimated state income tax payments made in 2017 can only be deducted on Pam's 2017 tax return, even if the payment is for the prior tax year (2016). Therefore, the payment would not be deductible in 2016.

In January 2017,Pam,a Calendar Year Cash Basis Taxpayer,made an Estimated