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LSDefine

Simple English definitions for legal terms

income averaging

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A quick definition of income averaging:

Income averaging is a way of calculating taxes by combining a person's current income with their income from previous years. This method is used to help people who have fluctuating or irregular income, such as authors, actors, and athletes, who face different tax rates each year. Income averaging allows them to pay taxes based on their average income over a period of time, rather than just their income for one year. However, income averaging was repealed in 1986 and is no longer available as an option for taxpayers.

A more thorough explanation:

Definition: Income averaging is a method of calculating taxes by averaging a person's current income with their income from previous years.

For example, if someone earned a lot of money one year but very little the next, income averaging would allow them to spread out their income over those two years and pay a lower tax rate overall.

This method is especially helpful for people who have fluctuating or bunched income, such as authors, actors, and athletes, who may face higher tax rates in years when they earn more money.

Overall, income averaging is a way to make taxes more fair for people whose income varies from year to year.

income approach | income-based plan

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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