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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 However, income averaging was repealed in 1986 and is no longer available as an option for taxpayers.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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oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
soyalmondoatmilk
8:38
good morning! hoping waves will come our wave today
8:42
GW wave today?
8:57
There’s someone I found on here with the username threeoutchange and if my understanding is correct that’s a reference to the debut album by a pretty cool 90s-00s Japanese band called Supercar. I geeked a little
8:57
It could just be a baseball reference I don’t get though lol
Dkk
9:00
@renard99: also, the same band that does a song in the anime Eureka 7 which I watched when I was like idk, 12
9:00
Yeah! They are pretty good. Three Out Change is an awesome J-rock record
Dkk
9:01
I will probably not listen to them more but fun fact. Really random to start the day. An omen that the waves will be very random today.
Dkk
9:03
Fuck, reading the wikipedia now. Literal last song they did before they broke up was Storywriter. Wow.
9:05
That one is a masterpiece
9:05
My favorite song by them is Recreation
glovediedthisishismom
9:05
snowing
Dkk
9:07
@renard99: man, hard to find.
Dkk
9:07
@glovediedthisishismom: Congrats on the snow.
Dkk
9:16
@renard99: Poetic and nice.
9:42
My name is renard99 and I just sent @babycat feet pics
glovediedthisishismom
9:42
nobody is at the office today they should let little glovey go home and watch harry potter
Dkk
9:49
Lmfao, Gross
Dkk
9:49
@glovediedthisishismom: Watch it at the office!
Dkk
9:50
Proton vpn and https://en.solarmovie-official.lol/
let little glovey go home!
babycat
9:55
it’s true he sent me feet pics (unsolicited!)
babycat
9:56
poor little glovey
babycat
9:56
it’s illegal to make you work on a snow day
BulbasaurNoLikeCardio
9:57
Free feet pics sounds like you saved some money
snow
9:59
wish it was snowing in texas rn
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