2007-03-19 01:10:16 · 3 answers · asked by Kate 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
Wayne is correct, it's been gone for a long time for most types of income. There is also income averaging still available for lump-sum pension distributions.
Basically, the income tax is paid the year the income is made, but it's calculated as if it was made across several years - this keeps you from being put into a very high bracket because of a large, unusual income item.
2007-03-19 02:31:20 · answer #1 · answered by Judy 7 · 0⤊ 1⤋
Assuming this is the US.....
Income Averaging went away with the passage of the new tax code in 1986 unless you are a farmer or fisherman.
2007-03-19 08:56:03 · answer #2 · answered by Wayne Z 7 · 2⤊ 2⤋
Income averaging is still available; however, only to farmers and fishermen!
2007-03-19 10:42:20 · answer #3 · answered by Z28_Zeppelin 2 · 0⤊ 0⤋