In April 2018, Bertie, a calendar year cash basis taxpayer, had to pay the state of Michigan additional income tax for 2017. Even though it relates to 2017, for Federal income tax purposes the payment qualifies as a tax deduction for tax year 2018.

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The payment of state income tax can be deducted on the taxpayer's Federal income tax return for the year in which it was paid, regardless of which tax year it pertains to. Therefore, Bertie can deduct the additional income tax payment made to the state of Michigan in 2018 on his 2018 Federal income tax return.

In April 2018, Bertie, a Calendar Year Cash Basis Taxpayer