Business, Legal & Accounting Glossary
Annualization is a tool which is used to predict the annual amount of something using only the data from part of the year.
The process of annualizing.
A procedure that is used in the USA whereby you multiply the taxable earnings of a month by 12 then divide it by the number of months involved to provide a monthly amount. Annualization as a procedure is specified by the Internal Revenue Code.
Annualization is a predictive tool that estimates the amount or rate of something for an entire year, based on data from part of a year. This tool is primarily used for taxes and investments. If you’re paying estimated taxes, you’ll need to annualize your income to determine how much tax to pay.
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annualization of income
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This glossary post was last updated: 14th January, 2020 | 11 Views.