Gross Income
Total income from all sources before deductions or taxes.
Gross income includes all income received from any source: wages, business profits, investment gains, rental income, alimony, and more. For businesses, it is total revenue before subtracting any expenses. Gross income is the starting point for calculating AGI and ultimately taxable income on your tax return.
Example
A business owner has $120,000 in business revenue, $5,000 in interest income, and $3,000 in rental income—gross income totals $128,000 before any deductions.
Why It Matters for Your Business
Gross income is the starting line for your entire tax calculation, so understanding everything that counts as income helps you plan and avoid underreporting.
Related Terms
More Taxes Terms
Adjusted Gross Income
Gross income minus specific deductions like retirement contributions.
Tax Audit
An examination of tax returns by the IRS to verify accuracy.
Capital Gains
Profit from selling an asset for more than its purchase price.
Capital Loss
Loss from selling an asset for less than its purchase price.
Tax Deduction
An expense that reduces taxable income.
Related Financial Guides & Resources
Automate Your Finances with AI
FiscalInsights uses AI to automate bookkeeping, track expenses, and forecast cash flow — so you can focus on your business.
Start Free Trial