If you are due a bonus at year-end, you may be able to defer receipt of these funds until January. This can defer the payment of taxes (other than the portion withheld) for another year. If you’re self-employed, defer sending invoices or bills to clients or customers until after the new year begins. You can also defer some of the tax here, subject to estimated tax requirements.
You can achieve the same effect of short-term income deferral by accelerating deductions, such as paying a state estimated tax installment in December instead of the following January due date.
By Ramon O. Ramos|2022-04-27T16:55:47-07:00April 27, 2022|Taxes|Comments Off on What can I do to defer income?
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