answersLogoWhite

0

Pre-tax income is the same as gross income OR the money you make before taxes are deducted/withheld.

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

How do you calculate pretax net operating income?

How do you calculate pre-tax net operating income


What is a pre-tax deduction?

A deduction taken out of payroll for something, reducing the income tax is applied to. Hence you get to pay that item with "pre tax" money...which is cheaper than after tax money.


What is a pre tax deduction?

A deduction taken out of payroll for something, reducing the income tax is applied to. Hence you get to pay that item with "pre tax" money...which is cheaper than after tax money.


Is it better to contribute pre-tax or after-tax to maximize savings and tax benefits?

It is generally better to contribute pre-tax to maximize savings and tax benefits. Pre-tax contributions reduce your taxable income, resulting in lower taxes paid upfront and potential tax-deferred growth on your investments.


Which is better: contributing to a 401k pre-tax or after-tax?

Contributing to a 401k pre-tax is generally better because it reduces your taxable income now and allows your investments to grow tax-deferred until retirement.


Can alimony be paid from pre-tax income?

Yes, alimony can be paid from pre-tax income, as the payments are typically considered a deductible expense for the payer and taxable income for the recipient. This means that the payer can reduce their taxable income by the amount of alimony paid, while the recipient must report it as income on their tax return. However, it's essential to consult with a tax professional or legal advisor to understand the specific implications and requirements based on individual circumstances and current tax laws.


How is 401K pretax?

"Pre-Tax" generally means that income to employee is diverted from income before being taxed. This pre-tax event reduced income and, therefore, reduces Federal and State income tax at the marginal tax rates of the account-holder. Roth contributions, however, are considered "after-tax". This concept essentially works in reverse. The funds are taxed before they go into the 401k account. However, the funds are generally withdrawn tax-free upon retirement.


How is research and development tax credit treated for income tax purpose?

i think as a pre operating expense, that is, an asset account.


Why is a pre-tax payment on ins better?

Its cheaper...it educes income that would be taxable.


How do I know if my 401k contributions are pre-tax?

You can know if your 401k contributions are pre-tax by checking your pay stub or contacting your employer's HR department. Pre-tax contributions are deducted from your paycheck before taxes are taken out, reducing your taxable income.


Are pre tax commuter benefits worth it for employees?

Pre-tax commuter benefits can be worth it for employees as they allow them to save money on commuting expenses by using pre-tax dollars. This can result in lower taxable income and potentially save employees money on their overall tax bill.


Are 401K contributions tax deductible?

401k's are not tax-deductible in the normal sense of the word. However, since normal 401k contributions are made with pre-tax funds, taxable income is reduced. As taxable income is reduced, tax is then reduced as well.