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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Before-tax Income


Synonyms:all earnings, gross income, total income
Filed Under: financial-banking, taxation
Tags: banking, taxes
 

Definition of before-tax income

before-tax income
1. A person's income or earnings before income taxes are paid.

Related Terms and Acronyms:

  • alternative minimum tax (AMT)   This tax primarily affects high-income taxpayers who shelter some of their income from tax through certain tax preference items or deductions. It is often referred to in tax publications as AMT and, if your income meets the limit, you have to recalculate your tax due based on the separate alternative minimum tax rates and tables.
      ➥  Form T691.
  • direct tax   A tax that is paid straight to the government.
  • earned income   Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
  • gross income   Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
  • gross overtime   Overtime pay before taxes that is averaged over two years can be considered monthly income, but it must be over the two years or it does not count.
  • personal disposable income   Personal income minus personal income tax payments. Also called "take-home pay."
  • short tax year   A tax period less than 12 months long, resulting from a business start-up or the transition to a tax year ending on a different date.

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