Gross Income

(redirected from Before-Tax Income)
Also found in: Financial.

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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
The data shows the rise in median expenditures has outpaced before-tax income for the lower 40 percent of earners in the five years to mid-2017 while the upper half has increased its financial cushion, deepening income disparities.
Reflecting higher cost of funds in the 1980s, before-tax income to assets was lower in 1983 and 1987 than in 1959 or 2015.
In addition to market income, they include all public cash assistance and in-kind benefits from social insurance and government assistance programs to arrive at "before-tax income." Their next step is to subtract all federal taxes including personal income taxes, Social Security payments, excise taxes and corporate income taxes.
One North Carolina server volunteered: "I made $60,000 in tips last year, reported $40,000--and had a before-tax income of $80,000!
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.
In a recent December 2013 report, the Congressional Budget Office divided all US households into five groups of equal size (quintiles), on the basis of their before-tax income. (3) The CBO definition of before-tax income is composed of labor income, business income, capital gains, capita income (excluding capital gains), income received in retirement for past services and other sources of income.
Between 1996 and 2006, the average inflation-adjusted tax paid by taxpayers in the top 0.1% increased by 33% (from $1,398,857 to $1,860,790) while their average before-tax income increased by 75% (from $4,275,339 to $7,512,538).
A family is poor if its before-tax income is less than the threshold.
If we become obsessed with tax breaks for the rich and ignore everything else, the skewing of before-tax income will become so large that even the most redistributive taxes will still leave gross inequities.
Nearly one in five Americans under age 65 lived in families that spent more than 10% of before-tax income on insurance premiums and medical care in 2006 (the last year for which figures are available), up from one in seven Americans in 2001, the report says.
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.
If the business could be sold for $400,000, and the funds invested at 8 percent, the resulting before-tax income would be $32,000 per year, over three times that provided if the business were retained.