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Author: shiningr Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121567  
Subject: Income Averaging Date: 9/24/2004 3:00 PM
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Hello-

I graduated from college this May and am now starting my first job. As a result of working only a partial year, I will have relatively low income, putting me in a low tax bracket this year. However, next year I will have a full year of income pushing me into a higher tax bracket.

I understand that in some cases it is possible to average income over a two year period in order to make for more consistent taxes. For example, if I were to move $10,000 from next years income (marginally taxed at 25%) to this year (taxed at 15%), it would reduce my taxes by $1000 next year.

I did some researching on the IRS website and in layman's terms they claim that this is now only permitted for those in agriculture. However, I would like a little more reassurance from someone who is familiar with the actual tax code. Does anybody know if I, as an engineer right out of college, would be eligable for any such income averaging?

Thanks,
Ryan
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