Tax Fact: Taxable Income is BELOW your Gross Income.

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Did you know….. Your taxable income is below your gross income. What??

Some taxpayers assume if they make $50,000, they’ll be taxed on $50,000 in income—- but this isn’t the case. The salary you earn from your employer is called your gross income. You’ll need to make adjustments to your income and claim any deductions and credits that you’re entitled to claim in order to arrive at your taxable income. Your taxable income determines what your tax bracket is and how much you’ll actually owe to the IRS.

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