Gross Income
Gross income is the total amount of money earned before any deductions or taxes are taken out. It is the amount of money that an individual or business earns from all sources, including wages, investments, and other sources of income. Gross income is used to calculate taxes and other deductions, such as Social Security and Medicare. It is also used to determine eligibility for certain government programs and benefits.
History of Gross Income
The concept of gross income has been around since the early days of taxation. In the United States, the first income tax was imposed in 1861 to help fund the Civil War. The concept of gross income was used to determine the amount of taxes owed by individuals and businesses. Over the years, the definition of gross income has evolved to include a variety of sources of income, including wages, investments, and other sources of income.
Comparison of Gross Income
| Type of Income | Gross Income | Net Income |
|---|---|---|
| Wages | $50,000 | $40,000 |
| Investment Income | $10,000 | $8,000 |
| Total | $60,000 | $48,000 |
Summary
Gross income is the total amount of money earned before any deductions or taxes are taken out. It is used to calculate taxes and other deductions, such as Social Security and Medicare. It is also used to determine eligibility for certain government programs and benefits. For more information about gross income, visit the Internal Revenue Service website or consult a tax professional.
See Also
- Net Income
- Taxable Income
- Adjusted Gross Income
- Income Tax
- Capital Gains
- Dividends
- Social Security
- Medicare
- Government Benefits
- Tax Professional
