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Okay, here is a very simplified scenario for a single filer (see screenshot). Assume I only have medical expenses and charity donations to itemize. Assume no more medical expenses or charity donations after 8/31.

On page 8 the IRS instructions say, "For each period shown on Schedule AI, figure your income and deductions based on your method of accounting. If you use the cash method of accounting (used by most people), include all income actually or constructively received during the period and all deductions actually paid during the period."

What should be entered on line 4c? If it's anything other than $21,000 then we're not doing what the IRS instructions say to do.