Bring Back Income Averaging.

[Total Refected Power]

Long ago (pre-1985 I believe) one had the ability to average your income over a three-year period that more properly reflected your level of income. This was a fair way to adjust for a single year spike that was not reflective of your general state of affairs. Many careers have incomes which fluctuate significantly from year to year. Now only farmers have the ability to take advantage of income averaging.

If the current tax system is staying put, give us some flexibility to pay taxes that are consistent with our overall financial situation.

 

[Eeks]

This will be the hottest topic in the forum. No one can resist the natural magnetic draw of financial accounting. You are right.

 

[Double Trouble]

Eeks 😛 LOL

I agree with you TRP

 

[Total Refected Power]

Eeks:

Even the smallest acorn can grow to a mighty oak. 😉

 

[Isla]

It does make sense....

For example, people in sales often see wide variations in their income.

Free lancers like me can get nothing one year and then rake it in the next... I'd rather it be looked at from a wider perspective.

Also, when my mom retired, she cashed in all her sick days (that woman is never sick!) and got taxed out the wazoo... but if she had taken them during her career, she would have been taxed at a different rate.

Why, when, and who took the income averaging provison away?

 

[Total Refected Power]

ISLA:

Bill Bradley in the 1986 "tax reform" bill. It was brought back to a certain extent for farmers in 1997. Interesting huh?

 

[thebestMAX]

TRF, Im with you.

My income really varies year to year especially now. I did use income averaging once when I got out of the service and went from nothing to a little something but never really got much out of the deal. Today though I wish we could average the last 10 years!

 

[chess9]

I agree with you, but it cost the treasury too much money and was a nightmare to audit the returns. IRS asked for the change. Thank IRS, as usual.

 

[Tominator]

Ronald Reagan pushed for this and during the eighties Government revenues doubled!


<< ...cost the treasury too much.. >>



Wrong again...

 

[chess9]

Tom: You have a cite of course? 😛