What determines the tax year of a payment/check?

Question

Is it the date written on the check? Or the date it's deposited? Or the date the money actually transfers into the account?

Answer 1

Officially when the money was set aside. More precisely when a check was mailed. (Once mailed, it's considered delivered.)

If I mail a check on 12/31 and a charity cashes it on 1/5, it's considered to be 12/31/2007.

If my employer mails me a paycheck on 12/31, it's 12/31/2007. (In reality my paycheck for working 12/31 won't be cut until 1/15, so it will be 2008 income.)

While the date mailed can be hard to prove unless I get it certified/return receipt, this is usually not rocket science. Charities will look at the post mark and issue the letter for 12/31 if it was mailed by then.

Answer 2

Do you mean for the payor or payee?
For the payor the date on the check, for the payee, the date received.