Before-tax income, also known as gross income, is the total amount of money that a person or business earns before any taxes or deductions are taken out. This includes income from wages, salaries, investments, and other sources. Before-tax income is used as the starting point for calculating taxes and other deductions, such as Social Security and Medicare taxes, and is different from after-tax income, which is the amount of money that a person or business has left after all taxes and deductions have been taken out.
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What does before-tax income mean?
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