DeVine & Associates, LLC

Tel: 401.254.0151

  • Home
  • About
  • Services
    • Bookkeeping Services
    • Financial Statement Preparation
    • New Business Formation
    • Payroll Administration
    • Quickbooks® Consulting
    • Tax Services
    • Small Business Payroll Processing
  • Articles
  • Contact Us

November 12, 2012 by Mark DeVine

Should You Defer Your Pay Until 2013?

Delaying income into next year could mean climbing rates and uncertainty.  Long term capital gains are usually easier to decipher.  The current 15% rate jumps to 23.8% on January 1, which comes from a combination of the new 20% rate plus the 3.8% health care add on that will hit most with incomes above $200,000. Ordinary income is not as clear; although, top rates jump from 35% to 39.6% in January, the payroll tax cut ends too.

If you have a legal right to payment, the IRS can tax you even if you choose not to receive it.  It is known as a constructive receipt.  The best example of this is a bonus.  Say your employer tries to give you a bonus at year-end, but you insist on receiving it in January to postpone taxes.  Because you had the right to receive it in December it is taxable then even though you might not pick it up until January. If your company agrees to delay payment and actually reports it as paid in January you will probably be successful.

 

To find out how we can help you, make an appointment with us today at 401-254-0151.  We look forward to hearing from you.

Filed Under: Taxes

About Mark DeVine

I have been in the tax and accounting profession since 1989. Before founding my own firm, I worked with the international accounting firm of KPMG, the Fleet Private Clients Group, and Bank of New England. I am also a member of the American Institute of Certified Public Accountants and the RI Society of CPAs.To discover how we can help you with taxes, payroll, bookkeeping and more, give me a call at 401.254.0151, or click the link to schedule your free 30 minute consultation today.

Contact Us

DeVine & Associates, LLC
386 Market Street, Unit #3
Warren, RI 02885-1627
Tel: 401.254.0151
Fax: 401.289.2418

Contact Us
  • Email
  • Facebook
  • LinkedIn
  • RSS

Business Services

  • Financial Statement Preparation
  • New Business Formation
  • Small Business Payroll Processing

Accounting Services

  • Bookkeeping Services
  • Quickbooks Consulting
  • Tax Preparation

Contact DeVine & Associates

Mark G. DeVine, CPA, CGMA
386 Market Street, Unit #3
Warren, RI 02885-1627
Tel: 401.254.0151
Fax: 401.254.0152

Copyright © 2021 · Powered by Success Marketing, LLC · Log in