4. In what year are income and deductions reported?

Individuals are pretty much limited to reporting income in the year it is actually received or available to you. This is also true of deductions. This is technically called the “cash” method of accounting. the rule is fairly simple: a transaction is deemed to occur in the year the payment(s) are made. One exception is in the case of charges on your credit card. you can claim a deduction in the year in which the charge is posted to your card, regardless of when you make your payment.

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