Froogle | Glossary | 'Assignment of Income'

a taxpayer’s direction that income earned by him/her be paid to another person – so that it will be considered the other person’s income (for federal tax purposes).

• An effective assignment of income would be to transfer a share of dividend-paying stock before the dividend declaration date (in such a case the dividend would be taxed to the transferee).

• An ineffective assignment of income would be to transfer the share after the dividend declaration date (here the dividend would be taxed to the transferor).

see accretion; income splitting

user comments

thank you, come again!
Froogle 1.1.1.7

ASSIGNMENT OF INCOME

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