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.

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 ?
REFLECTIONS: There is a split of authority on the subject; the Fifth, Sixth and Eleventh Circuits exclude contingency fees from clients' gross incomes; the Third, Fourth, Seventh, Ninth, Tenth and Federal Circuits include them.
On Z's original 1998 Federal income tax return, he included the entire judgment in adjusted gross income (AGI), including the amounts paid as attorneys' fees.
These savings are even more dramatic for seniors with gross incomes of $50,000 +.
The publication also explains that "You can deduct only the amount of your medical and dental expenses that are more than 7.5 percent of your adjusted gross income. This means that you must subtract 7.5 percent of your adjusted gross income from your medical expenses to figure your allowable medical expense deduction."
In addition, the credit is phased out for taxpayers with modified adjusted gross incomes above $75,000, with full phase-out at $115,000.
LTC proceeds received on account of personal injuries or sickness are generally excludable, subject to a per diem cap; employer contributions to an LTC insurance plan are excludable from an employee's gross income, as are benefits paid by an indemnity-type LTC policy.
Also, the employees did not include any of this compensation in their gross incomes. Nevertheless, Venture Funding deducted $1,078,672 on its 1988 return.
Venture Funding argued that the stock was includible, meaning that the employees were required to include it in their gross incomes. Therefore, the fact that they did not actually include the stock in their incomes in 1988 did not prevent Venture Funding from claiming the deduction in 1988.
82-196,(39) which held that employer contributions to an accident or health plan that provides (1) coverage for m employee and his spouse and dependents before and after his retirement and (2) benefits for a deceased employee's surviving spouse and dependents, are excludible from the employee's and survivor's gross incomes under Sec.
The issue was whether amounts contributed to the fund for A and B were includible in their gross incomes.
274(n)(2)(B), which allows a 100% deduction for the cost of meals excludible from the recipients' gross incomes under Sec.
Thus, as indicated by the referenced legislative history, even if the fair market value of deferred vacation pay becomes includible in the gross incomes of employees (for example, by reason of certain types of security arrangements under the rules of section 83, such vacation pay is not deductible by their employer, under the rules of section 404(a)(5) until it is paid to the employees.