In January 2012,Pam,a calendar year cash basis taxpayer,made an estimated state income tax payment for 2011.The payment is deductible in 2011.

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Since Pam is a calendar year cash basis taxpayer, only payments actually made during the calendar year 2011 can be deducted on her 2011 tax return. Even though the estimated state income tax payment was related to 2011 taxes, it was made in 2012 and therefore cannot be deducted on Pam's 2011 tax return.

In January 2012,Pam,a Calendar Year Cash Basis Taxpayer,made an Estimated