What is included in gross income for tax purposes?

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Gross income for tax purposes is the broad idea that includes almost every kind of money you receive during the year from any source, unless the law specifically excludes it. This means wages and salaries are included, as are interest, dividends, business income, rents, royalties, and capital gains, along with other types of income. The statement that gross income consists of all income from all sources unless excluded, including wages, interest, dividends, business income, capital gains, and other items, captures this wide scope precisely.

Some items are excluded from gross income or reduce taxable income through deductions or exclusions, but the starting point is that most income you receive is included. That’s why options that limit gross income to only wages, or only interest and dividends, don’t fit, and why including capital gains is correct.