On December 31, 2012, 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 2013. If Lynette itemizes, she can deduct the $500 in 2012.

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Lynette made a $500 contribution to a qualified charitable organization before the end of the tax year (December 31, 2012) and will pay her credit card balance in January 2013. If Lynette itemizes her deductions, she can deduct the $500 contribution on her 2012 tax return even though she won't pay her credit card bill until the next year.

On December 31, 2012, Lynette Used Her Credit Card to Make