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Gross income is an individuals total personal income before taking taxes or deductions into account. Taxable income of course includes salary and wages, but it can also encompass profits from stock or real estate sales and gambling winnings.
Updated July 17, 2023. Whether youre reporting your taxes, applying for a new loan or creating a personal budget , you might be interested in knowing your annual income . This figure includes all the money you earn in one year from your salary and other sources.
Income generally refers to the amount of money, property, and other transfers of value received over a set period of time in exchange for services or products. Taxable income is gross income minus exclusions, exemptions, and deductions allowed under the tax law.
Personal income includes compensation from a number of sources, including salaries, wages, and bonuses received from employment or self-employment, dividends and distributions received from investments, rental receipts from real estate investments, and profit sharing from businesses.
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