pretax income


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Pretax Income

An individual's total income before he/she pays any income tax or other tax, but after he/she takes deductions. For example, suppose one's salary is $50,000. If the person takes $10,000 in tax deductions, his/her pretax income is only $40,000.

pretax income

Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. Also called earnings before taxes, pretax.

Pretax income.

Pretax income, sometimes described as pretax dollars, is your gross income before income taxes are withheld.

Any contributions you make to a salary reduction retirement plan, such as a traditional 401(k) or 403(b) plan, or to a flexible spending account comes out of your pretax income.

The contribution reduces your current income and the amount you owe in current income taxes.

pretax income

Income from an investment before income taxes.If there are significant tax advantages to an investment, such as low-income housing credits or bonus depreciation, the after-tax income will sometimes be larger than the pretax income.

References in periodicals archive ?
Core operating earnings, pretax income before impairments, restructuring costs and other special items and free cash flow should not be considered in isolation or as substitutes for net income (loss), pretax income (loss), cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP or as measures of profitability or liquidity.
Pretax income for the second quarter was $340,000, an increase of $159,000, or 87% as compared to the same quarter a year ago.
pretax income in 1999, matching the highest median figure reported by companies in more than 10 years and up from 0.
For the six months ending March 31, pretax income from Utilities was $59,900,000 versus $65,300,000 for the same period in 1997.
the recapitalization of the SAIF (1,224) (3,256) Consolidated pretax income (loss) 3,342 (867) (Provision) credit for income taxes (1,317) 391 Net Income (loss) $2,025 $(476) Net Income (loss) per share $.
During the first five year period of the Note, Osteotech received principal payments of approximately $3,069,000 which were previously reflected in pretax income; and commencing in June 1995, began receiving monthly payments of $69,000, which also have been reflected in the Company's pretax income.
For the six months ended June 30, 1995, the Company had net sales of $152,160,000, pretax income of $14,385,000 and net income of $10,692,000 or primary earnings per share of $0.
A 10% change in retirement plan obligations, if recognized on the income statement, would have changed 2004 pretax income by 26% for the group.
The earnings guidance for 2006 remains $50-60m of pretax income, which is $29-35m of GAAP net income.
23 per share in 1993, due primarily to the increase in pretax income offset somewhat by a 12.
The company reported pretax income of $618,037, up 104 percent from the $302,450 for the same period a year ago and net income of $377,003 for the quarter in comparison with $302,450 for the same period a year ago.