On December 31, 2017, Lynette used her credit card to make a $500 contribution to the United Way, a qualified charitable organization. She will pay her credit card balance in January 2018. If Lynette itemizes, she can deduct the $500 in 2017.

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Lynette can deduct the $500 contribution on her 2017 tax return, even though she will not actually pay her credit card bill until January 2018. The deduction is allowed in the year the contribution was charged to her credit card, regardless of when the payment is actually made.

On December 31, 2017, Lynette Used Her Credit Card to Make