Author: soumyopriyosaha Subject: Income-averaging law Posted: Mon Jan 25, 2010 11:25 pm (GMT -8) State X’s income-averaging law allows a portion of one’s income to be taxed at lower rate than the rate based on one’s total taxable income. To use income averaging, the taxpayer must have earned taxable income for a particular year that exceeds 140 percent of his or her average taxable income for the previous three years. People using income averaging owe less tax for that year than they would without income averaging

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Critical Reasoning :: Income-averaging law