If tax rates will be higher next year, taxpayers should defer their income to next year regardless of their after-tax rate of return.

Question

Quizplus · Accepted Answer

Deferring income to a year with higher tax rates would result in paying more taxes on that income, which is generally not advisable unless the taxpayer expects their income to significantly decrease or has specific financial strategies that benefit from deferring income despite higher tax rates.

If Tax Rates Will Be Higher Next Year, Taxpayers Should