When "income timing" is used as a tax strategy:

Question

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Income timing as a tax strategy involves managing when income is recognized to take advantage of lower tax rates in certain years, which can be particularly useful for self-employed individuals who have more control over their income streams. It can involve strategies such as prepaying expenses or deferring income, and while it can be more challenging for employed taxpayers who have less control over their income, it remains a viable strategy for many.

When "Income Timing" Is Used as a Tax Strategy