What is gross income?

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Multiple Choice

What is gross income?

Gross income is the total money you receive from all sources that isn’t specifically excluded by tax law. It includes both earned income—like wages, salaries, tips, and self-employment income—and unearned income—such as interest, dividends, rents, royalties, and capital gains. Some income is excluded from gross income by law (for example, certain tax-exempt interest), so that amount isn’t counted as gross income. This starting point is used to determine taxable income after deductions and adjustments.

Gross income is the total money you receive from all sources that isn’t specifically excluded by tax law. It includes both earned income—like wages, salaries, tips, and self-employment income—and unearned income—such as interest, dividends, rents, royalties, and capital gains. Some income is excluded from gross income by law (for example, certain tax-exempt interest), so that amount isn’t counted as gross income. This starting point is used to determine taxable income after deductions and adjustments.

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