How to Estimate Pretax Amounts for the IRS
Your pretax income, also called your gross income, is the amount of money you earn before any taxes are withheld or paid. The figure also accounts for deduction of any costs associated with doing your job, running your business or contributing to any tax-exempt retirement fund. Find your pretax amount to determine your tax bracket and figure out your tax burden for the year.
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Instructions
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Calculate the wages that you earned from work by taking your rate of pay and multiplying it by the number of times you are paid that rate in a year. For example, a pay rate of $10 per hour should be multiplied by the number of hours you work in a day. Multiply the solution times the number of days you work in a month. Multiply the total sum for the month by 12 to find the yearly gross income from wages.
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Add to the gross sum from wages any additional income you receive during the year. Include additional work earnings from a second job, interest from investments and savings.
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Add the total sum you spend for your business. If you own a small business, deduct the cost of your monthly lease payment as well as utilities and wages and benefits paid to employees.
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Subtract the amount of the expenses for doing business from the total income from your wages and other forms of income to arrive at your annual pretax amount.
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