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Deferred Income Tax
What does deferred income tax mean and how is it different than regular income taxes? I am so confused!
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Deferred in front of anything typically means that that thing, whatever it is, will be done later.
Like a deferred deployment in the military means you may join at one date and not be expected to deploy until a certain date in the future. This is the method commonly used to snare high school kids before they realize what they are getting into. ;-)
So, deferred income tax is tax that is scheduled to be paid at a later date. There are MANY reasons this might happen, but most of them involve business taxes. If you aren't self employed, or running your own business, it is unlikely you are going to run into this.
For another take on it, with examples, please check out this link:
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I hope you are unconfused now, but, if not, please ask a new question and I will do my best to unconfuse you.
If you are in the middle of a tax situation, and you are encountering this term in your own situation, I advise you to consult a tax professional right away. Believe me, deferred income tax is nothing you want to figure out how to calculate on your own.
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