In January 2013, Pam, a calendar year cash basis taxpayer, made an estimated state income tax payment for 2012. The payment is deductible in 2012.

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Since Pam is a cash basis taxpayer, the estimated state income tax payment made in January 2013 would be considered a payment for the 2013 tax year, not the 2012 tax year. Therefore, it would not be deductible in 2012.

In January 2013, Pam, a Calendar Year Cash Basis Taxpayer