What Year for Bills Paid at End of December?

[BumbleBee]

I recently paid utility and pest control bills (2018). Some of them will not be received by the companies until Jan 2nd, 2019. What year do I put them on for taxes?

I assume the payments received by the companies in 2018 go on 2018 taxes while the payments received by the companies in 2019 go on 2019 taxes.

But then there's one bill that will come out of my account on the 31st of December but not be posted as a payment on the utility account until Jan 2nd 2019. So what do I do with that one as far as taxes go?

[lovemykidstoo]

I record mine when I make the check out.

[BumbleBee]

Originally Posted by lovemykidstoo

I record mine when I make the check out.

This is what I generally do but I usually don't pay bills this late in December. I thought I was being smart getting January bills paid now.

In all honesty I'm probably way overthinking it and in the grand scheme of things it most likely doesn't matter. The business deduction of the recently paid bills is only $420 so it's not going to change anything regardless of which year's taxes it ends up on.

[TomCopeland]

Originally Posted by BumbleBee

I recently paid utility and pest control bills (2018). Some of them will not be received by the companies until Jan 2nd, 2019. What year do I put them on for taxes?

I assume the payments received by the companies in 2018 go on 2018 taxes while the payments received by the companies in 2019 go on 2019 taxes.

But then there's one bill that will come out of my account on the 31st of December but not be posted as a payment on the utility account until Jan 2nd 2019. So what do I do with that one as far as taxes go?

When you sign and mail a check it is considered paid as of that date, not the date it is received, so deduct it on your 2018 taxes. It doesn't matter to you that the company reports it as income in 2019. It's deductible to you in 2018. Same thing with signing a credit card statement on December 31st.

[BumbleBee]

Originally Posted by TomCopeland

When you sign and mail a check it is considered paid as of that date, not the date it is received, so deduct it on your 2018 taxes. It doesn't matter to you that the company reports it as income in 2019. It's deductible to you in 2018. Same thing with signing a credit card statement on December 31st.

Thank you!

[Josiegirl]

That's good to know, thanks!