JulieS
Expert Alumni

State tax filing

It depends on whether you report your income on a cash basis, or accrual. Cash basis is most common for individuals and small businesses.

 

If you report your business income on a cash basis, you have to report the tax paid as a business expense in the year that it was paid.

 

If you use the accrual basis, you report the expense as soon as it is due, even if you didn't pay it yet. Click here to learn more. 

 

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