Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

income averaging

Read a random definition: in dote aestimata

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 However, income averaging was repealed in 1986 and is no longer available as an option for taxpayers.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

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
LSD+ is ad-free, with DMs, discounts, case briefs & more.