AliciaP1
Expert Alumni

Retirement tax questions

In your bookkeeping, you should input the deposits as 12/30 and then hold the difference between book & bank as a reconciling item.

 

This still qualifies as cash-based accounting for tax purposes and you can then include the income on your 2021 taxes.  Just be sure you do not double count the income and use the deposited date in 2022.

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