FL Tax Law Specialist Practice Questions - Florida Bar Board Certified - Tax Law Exam

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A single, cash-method taxpayer receives a $5,000 bonus check from her employer on December 30, 2025, but deposits it on January 3, 2026. Under the federal income tax doctrine that governs cash-method taxpayers, in which year is the $5,000 includible in gross income?

2025, because the check was set apart and available to her without substantial restriction 2026, because that is when the funds were deposited and cleared Either year, at the taxpayer's election under IRC 451 Neither year until the employer reports it on a Form W-2

Correct Answer:

2025, because the check was set apart and available to her without substantial restriction

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