Defer New Invoices Until 2025 Where Possible at Year End

Another hot topic right now is inflation. It’s no secret that we’re all living through an age with historically high inflation. As a result of these changes, the IRS has also updated the income tax brackets for 2024. If you want to take advantage of these new rates, then it might make the most sense to defer any new invoices until 2025 (at year end).

Deferring new invoices will provide multiple benefits. Not only will that income likely be taxed less since 2025’s income thresholds will be higher, but you’ll also minimize your tax liability for the current year’s returns (2024). But, again, this is contingent upon what happens with the budget reconciliation near the end of the year.