Definition of Taxable income:
Gross income from which standard deductions and other allowances have been subtracted.
Unearned income considered taxable income can include canceled debts, alimony payments, child support, government benefits (such as unemployment benefits and disability payments), strike benefits, and lottery payments. Taxable income also includes earnings generated from appreciated assets that have been sold or capitalized during the year and from dividends and interest income.
Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year. It is generally described as adjusted gross income (which is your total income, known as “gross income,” minus any deductions or exemptions allowed in that tax year). Taxable income includes wages, salaries, bonuses, and tips, as well as investment income and unearned income.
How to use Taxable income in a sentence?
- Taxable income consists of both earned and unearned income.
- In order to qualify for the new USDA home mortgage loan, your taxable income must be between $45, 0000 dollars a year and $70, 0000 dollars a year.
- Taxable income is generally less than gross income, having been reduced by deductions and exemptions allowed by the IRS for the tax year.
- I received a raise at work so now I am in a higher tax bracket due to having more taxable income .
- The worker was disheartened by the amount of deduction taken out of his pay, his taxable income was not going to be able to get him very far.
- Taxable income is the amount of a person’s gross income that the government deems subject to taxes.
Meaning of Taxable income & Taxable income Definition