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When does giving a gift “count” for tax year?
Generally it goes by when they receive the check, not when they cash the check. Though if the check was received prior to midnight on December 31st, but after the bank closes, they would probably let the tax payer decide to count it for the next year. Of course if the check is from person A to person B then the only issue is gift tax, or annual limit calculations.  If it is company to person then income tax could be involved.  The IRS calls this Constructive receipt Income   Under the cash method, include in your gross income all items of   income you actually or constructively receive during your tax year. If   you receive property or services, you must include their fair market   value in income. Example.   On December 30, 2011, Mrs. Sycamore sent you a check for interior   decorating services you provided to her. You received the check on   January 2, 2012. You must include the amount of the check in income   for 2012.  Constructive receipt.   You have constructive receipt of   income when an amount is credited to your account or made available to   you without restriction. You do not need to have possession of it. If   you authorize someone to be your agent and receive income for you, you   are treated as having received it when your agent received it. Example.    Interest is credited to your bank account in December 2012. You do not   withdraw it or enter it into your passbook until 2013. You must   include it in your gross income for 2012.  Delaying receipt of income.    You cannot hold checks or postpone taking possession of similar   property from one tax year to another to avoid paying tax on the   income. You must report the income in the year the property is   received or made available to you without restriction. Example.   Frances Jones, a service contractor, was entitled to receive a $10,000   payment on a contract in December 2012. She was told in December that   her payment was available. At her request, she was not paid until   January 2013. She must include this payment in her 2012 income because   it was constructively received in 2012.  Checks.   Receipt of a valid   check by the end of the tax year is constructive receipt of income in   that year, even if you cannot cash or deposit the check until the   following year. Example. Dr. Redd received a check for $500 on December 31, 2012, from a   patient. She could not deposit the check in her business account until   January 2, 2013. She must include this fee in her income for 2012. In general it is best not to cut it close. If the check is to be counted as an January event it is best to send it in January. If it is to be December event it is best to send it early enough to be able to say with confidence that the check arrived at the destination before the end of the year.