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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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I pull taxable money out of a account and paid off a big portion

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I pull taxable money out of a account and paid off a big portion of my home loan to reduce my mounthly bills I though I could income average to keep me in the same tax bracket H&H block said I could not average, this cost me way more in taxes then the mortgage intrest
Submitted: 5 years ago.
Category: Tax
Expert:  Wendy Reed replied 5 years ago.

Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.


Hello there,

Unfortunately you received the correct information. Income averaging has not been available to ordinary taxpayers for years. It is allowed in very limited circumstances, such as the farming and fishing.


Although you are paying a hefty tax burden this year, your future mortgage interest has been reduced and this will probably cost you less in the long run.


I am sorry I cannot help you more, please let me know if you need additional assistance.

Wendy Reed and other Tax Specialists are ready to help you