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Section 61 of the Internal Revenue Code (IRC 61, 26 U.S.C. § 61) defines "gross income," the starting point for determining which items of income are taxable for federal income tax purposes in the United States. Section 61 states that "[e]xcept as otherwise provided in this subtitle, gross income means all income from whatever source derived
It is opposed to net income, defined as the gross income minus taxes and other deductions (e.g., mandatory pension contributions). For a business, gross income (also gross profit , sales profit , or credit sales ) is the difference between revenue and the cost of making a product or providing a service, before deducting overheads , payroll ...
In U.S. business and financial accounting, income is generally defined by Generally Accepted Accounting Principles (GAAP) and the Financial Accounting Standards Board as: Revenues – Expenses; however, many people use it as shorthand for net income, which is the amount of money that a company earns after covering all of its costs as well as taxes.
To calculate your AGI, you subtract specific deductions from your gross income. ... Your W-2 does not list your adjusted gross income, but it contains the information you need to calculate your AGI.
AGI, or Adjusted Gross Income, is your total income, including wages, interest, dividends and capital gains, minus specific deductions or adjustments. Your AGI is used to calculate the portion of ...
Definition of gross income (before deductions), including items specifically taxable 101–140: Specific exclusions from gross income 141–149: Private activity bonds 151–153: Personal exemptions; dependent defined 161–199: Deductions, including interest, taxes, losses, and business related items 211–224: Itemized deductions for ...
In accounting, revenue is a subsection of the equity section of the balance statement, since it increases equity. It is often referred to as the "top line" due to its position at the very top of the income statement. This is to be contrasted with the "bottom line" which denotes net income (gross revenues minus total expenses). [3]
Gross sales are the sum of all sales during a time period. Net sales are gross sales minus sales returns, sales allowances, and sales discounts. Gross sales do not normally appear on an income statement. The sales figures reported on an income statement are net sales. [4] sales returns are refunds to customers for returned merchandise / credit ...