Outrageously Funny Word Dictionary :: Pretaxation

👉 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