Can I do a five year averaging on my taxes?

Answer by  Liz59 (10966)

Yes you can do a five year averaging on your taxes by taking the total amount of taxes in five years and dividing by five.

Answer by  DawnMarie (22)

Most likely you can not. For a short time (about fifteen years ago) the government allowed five year averaging. But now, unless you are a farmer, you cannot.

Answer by  tamarawilhite (17883)

No. This is not legal. You have to pay what is owed for the prior tax year or arrange a payment plan with the IRS.

Answer by  tamarawilhite (17883)

This is not legal in most states. You must use the prior year to three years (depending on your location) when determining quarterly estimated payments.

Answer by  Latin4 (11170)

Yes, but make sure you have all the information that the IRS will need. This is something that will probably get audited and you need to be prepared.

Answer by  Liz59 (10966)

Yes you can do that. All you have to do is take your taxes for all five years and then divide it by the number of years which in this case is five.