Gross income
sum of all earnings before taxes
Gross income in United States income tax law is money or anything of value gained from all sources. Gross income is the amount of income before any tax deductions or allowances.[1] In the Law of the United States, 26 U.S. Code § 61, "Except as otherwise provided in this subtitle, gross income means all income from whatever source derived...".[2]
Exclusions (US) change
Some types of income are specifically excluded from gross income. These are listed at 26 U.S. Code Part III and include:
- Certain death benefits[2] (money paid on a life insurance policy to the beneficiary when the insured person dies)[3]
- Gifts and inheritances[2]
- Interest on State and local bond[2]
- Compensation for injuries or sickness[2]
- Amounts received under accident and health insuranceref name=grossincLII/>
- Certain combat zone compensation of members of the military[2]
- Qualified scholarships[2]
References change
- ↑ "gross income". Dictionary.com, LLC. Retrieved 24 May 2016.
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 "26 U.S. Code § 61 - Gross income defined". Legal Information Institute/Cornell University Law School. Retrieved 24 May 2016.
- ↑ "Death Benefit". Investopedia, LLC. Retrieved 24 May 2016.