What are the IRS rules about income averaging?

Answer by  salsafoodie (3146)

The rules for IRS change every year, so it is best to get updates every year online or with the taxes forms that you can pick up.

Answer by  cynosure (376)

After the 1986 tax reform act, the practice of income averaging is no longer allowed for the individual taxpayer. Income averaging remains a viable option for the unincorporated family farmer; such a taxpayer may shift overages in his/her income evenly to the three basis years prior.