According to Pub 514 under Credit for Taxes Paid or Accrued.
Cash method of accounting. (Taxes Paid)
If you use the cash method of accounting, you can choose to take the credit either in the year you pay the tax
or in the year you accrue it. You are using the cash method of accounting if you report income in the year you actually or constructively receive it, and deduct expenses in the year you pay them.
Thus you can report the taxes paid and take the credit in TY2021 even though you actually paid the tax in 2022. You would use 12/31/2021 for the date since TT won't accept a date in 2022. This enables you to use "Paid" for both categories of income.
