Worldwide income

Worldwide income,

Definition of Worldwide income:

  1. The total aggregate of revenue generated by a tax-paying entity from all sources that includes foreign, domestic, passive and active income from operations and investments that must be reported to the IRS for tax purposes. An exclusion may apply to a portion of earnings generated by U.S. citizens who work abroad.

  2. The IRS demands to know about all of a taxpayer's worldwide income, taxable or otherwise. Money that is paid to U.S. citizens or resident aliens as wages, independent contractor payments or unearned income from pensions, rents, royalties, and investments may all be subject to tax by the IRS. There are some exceptions for U.S. taxpayers who live abroad.

  3. In the United States, worldwide income describes an aggregation of a taxpayer's domestic and foreign income. Worldwide income is income earned anywhere in the world and is used to determine taxable income. In the U.S., citizens and resident aliens are subject to tax on worldwide income.

Meaning of Worldwide income & Worldwide income Definition