Define: Annualization

UK Accounting Glossary

Definition: Annualization


Quick Summary of Annualization


Annualization is a tool which is used to predict the annual amount of something using only the data from part of the year.




What is the dictionary definition of Annualization?

Dictionary Definition


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.


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Full Definition of Annualization


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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https://payrollheaven.com/define/annualization/
Modern Language Association (MLA):
Annualization. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 17, 2019 https://payrollheaven.com/define/annualization/.
Chicago Manual of Style (CMS):
Annualization. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/annualization/ (accessed: November 17, 2019).
American Psychological Association (APA):
Annualization. PayrollHeaven.com. Retrieved November 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/annualization/

Definition Sources


Definitions for Annualization are sourced/syndicated from:


This glossary post was last updated: 4th February 2019.