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If you do not include them on your spreadsheet, be sure that you list your net (post-deduction) income rather than your gross (total, pre-deduction) income under the "revenue" section.
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These figures are for pre-tax income.
Only after accounting for the loss carryforwards and certain special deductions, do we get to the taxable income of the company, or what the IRS defines as "income subject to tax". So the difference in effective tax rates (ETR) also comes from whether we define "net income" or "income subject to tax" as the pre-tax income.
Could we tinker with the deduction making it a fairer deduction across income levels?
Beginning in 2013 there's an additional 0.9% Medicare tax on gross compensation--meaning before 401(k) or other pre-income-tax deductions--of more than $200,000 for individuals or $250,000 for couples.
With that in mind, under the new law, Congress specifically prohibited pre-payments for income tax to be used as state and local tax deductions for the current year.
On net, deductions exceeded income by $2.3 billion.
Then there are the myriad of deductions from income.
Calculate pre-tax net income.
After the operations and sales deductions, add income from interest earned on funds.
Add anticipated commission or bonus, minus pre-tax deductions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com