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Constructive receipt

A concept of tax law that taxes income at the time you could have received it, even if you don’t actually have it. A paycheck you could pick up in December is considered constructively received and taxed in that year, even if don’t get and cash the check until the following January. Also, interest paid on a savings account is considered constructively received and taxable in the year it is credited to your account, whether or not you withdraw the money.