Fact vs. Fiction: Tax Bracket Threshhold
We understand that it can be tricky navigating the world of personal finance. Everyone seems to have an opinion, and it can be hard to know what to believe. Following is another myth in a series created as a way to present and debunk some of the most common financial myths. .
Fiction: If you’re on the threshold of a tax bracket, you should stay on the higher end and enjoy the higher-income status.
Fact: If you’re on the threshold of a tax bracket, deferring income or accelerating deductions may help you reduce your tax exposure. It might make sense to defer some of your income to the next year if doing so will put you in a lower tax bracket. Accelerating deductions, such as medical expenses or charitable contributions, into the current tax year may have the same effect.