October 12, 2023|4 min read Taxable income is a term you’ve likely heard during tax season. Like it suggests, taxable income is the amount of a person’s or company’s income—minus exemptions and deductions—that can be taxed.
A traditional IRA, for example, allows you to defer paying taxes on both your contributions and any income in the account until you make withdrawals, generally in retirement. You still pay tax on the balance in your account, but you pay it later. Bear in mind that the calculator does not...