Gross Income

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Gross Income

The financial gains received by an individual or a business during a fiscal year.

For Income Tax purposes, gross income includes any type of monetary benefit paid to an individual or business, whether it be earned as a result of personal services or business activities or produced by investments and capital assets. The valuation of gross income is the first step in computing whether any federal or state income tax is owed by the recipient.

gross income

n. in calculating income tax, the income of an individual or business from all sources before deducting allowable expenses, which will result in net income. (See: income tax)

References in periodicals archive ?
The official CE definition of before-tax income does not include lump-sum income, and the CE imputes only the components of before-tax income.
Calculate 10% from your gross before-tax income, and give it to a charity of your choice every time you get paid.
A family is poor if its before-tax income is less than the threshold.
It could be true of after-tax income, but the standard measures of inequality are of before-tax income.
The think tank defines a high out-of-pocket burden for healthcare as spending more than 10% of before-tax income on insurance premiums and medical care.
It also would increase GDP by nearly 10 percent and ultimately raise the before-tax income of average Americans by 10 percent.
13) These numbers are meant to be realistic: in 1998, a single taxpayer with before-tax income of $30,000 would have paid $6,124 in income tax if she had had only the basic personal amount credit and had paid provincial tax equal to half of basic federal tax.
So, as an example, a family of four living in a large Canadian city with a before-tax income of less than $37,253 in 2003 would have been living below the poverty line.
Under FERS, an employee may contribute up to 10 percent of before-tax income to the Thrift Savings Plan, or TSP, with the government matching up to 5 percent.
At a 33 percent tax rate, it took $4,500 of before-tax income to produce the $3,000 in the Roth IRA, but only $3,000 to produce a deductible $3,000 in the traditional IRA.
For Arkansans with an annual income of $25,000, that's 5 percent of before-tax income spent on tobacco.