What does BFIT mean in TAX

BFIT stands for "Before Federal Income Tax". This means that the amount of money earned before taxes are removed from somebody's paycheck is the amount labeled as BFIT.

Yes, understanding your BFIT is important in order to correctly calculate your total taxable income. Knowing your total taxable income can help you determine how much tax you owe on your earnings during the year.

As long as you have access to information about your wages, salary, and other taxable income sources, you will be able to determine your BFIT by subtracting any deductions from this figure.

Generally speaking anyone with wage or salary income should report their BFIT when filing their taxes; however, certain restrictions may apply depending on filing status and type of income earned. It is best to consult with an experienced tax preparer if you need assistance with determining whether or not you should report your BFIT on your return.

If you underestimate your total taxable income (i.e., leave out certain sources such as bonuses or self-employment income) then you may end up owing more than anticipated come tax season due to underpayment of estimated taxes throughout the year. Therefore it is important to understand what should be included in calculating one's total taxable income which starts with knowing their Before Federal Income Tax earnings.