Outrageously Funny Word Dictionary :: Pretax

👉 In accounting, the term "pretaxation" refers to a reduction in an individual's income tax liability that is not included in their taxable income. This can be due to deductions or credits, such as charitable contributions, business expenses, and certain types of interest payments. Presumably, this practice is intended to minimize taxes owed on income by individuals who are not required to pay any additional tax on their income. It may also occur when an individual receives a refund for income that they previously paid in

pretaxation

👉 In accounting, "pretax" refers to the amount of tax that an individual or entity pays on their income before any deductions are taken. This is typically calculated based on the tax laws in a particular country and may include items such as social security contributions, Medicare taxes, and certain types of charitable donations.

pretax