From cnnfn.com,"If you're self-employed, plan when you bill now. If you have made more this year than you expect to make next year, bill at the end of the year for services you perform near year-end. That way, you'll get paid next year, when you may be in a lower tax bracket."http://cnnfn.cnn.com/2000/11/07/taxes/q_taxplanning/Look under 'Can You Manage Your Income?'Why are there references in the above article to waiting until December or "year end" to bill clients? What's wrong with doing this in October or November?What is meant in the 'Tax Tips' gray box for #2: Speeding up payments?Thanks,brettrkr
If you bill too early then they may pay you before the end of the year. Their point is pushing receipt of payments into next year by billing them in Dec (or Jan or Feb...)so the income affects next year's taxes not this year's.The other point seems to be the opposite situation. If you want to take a deduction this year for something you would normally pay next year then pay in December of this year.
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