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Can the taxes for a large increase in income be spread over…

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Can the taxes for...

Can the taxes for a large increase in income be spread over several years?

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Can the taxes for a large increase in income be spread over several years?

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Submitted: 7 months ago.Category: Tax
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12/20/2017
Tax Professional: Robin D., Senior Tax Advisor 4 replied 7 months ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 18,220
Experience: 15years with H & R Block. Divisional leader, Instructor
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Tax Professional: Robin D., Senior Tax Advisor 4 replied 7 months ago

Income averaging for all taxpayers was a way to effectively lower the tax rate on this year’s income by spreading it over a number of prior (lower-income) years to find an average tax rate for it.

The general 4-year income averaging rule expired in 1986. Currently, income averaging can only be used by farmers and fishermen for their business income.

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