Income Definition

In preparing and filing taxes, different definitions of income can be confusing for taxpayers. Below are explanations and definitions of different types of income. Either taxpayers or the taxpayers' preparers need to understand the differences between different types of income, know the different definitions and able to calculate which income should be included in what sections of tax returns. Even the best tax filing software, including TurboTax and TaxCut do not have all the different income built in so it is up to the taxpayer or the tax preparer to understand and include the appropriate income in the right section or the IRS will have a reason to audit the taxpayer.

Earned income & Unearned income

Taxable income & Nontaxable income

Gross income

Other income

Other income related definitions and explanations

• Taxes on Social Security Income
• Definition of net income
• Definition of gross income
• Income levels definition
• Definition of income statement
• Income level definition
• Definition of income tax
• Definition of adjusted gross income
• Passive income definition
• Definition of earned income
• Definition of income tax preparation services
• Fixed income definition
• Tax code definition of income
• HUD definitions of income
• Low income definitions
• Definitions of corporate income
• Gross and net income definitions
• Income levels definition