 It is generally described as gross income or adjusted

gross income (which is minus any deductions or

exemptions allowed in that tax year). Taxable
income includes wages, salaries, bonuses and tips, as
well as investment income and unearned income.
 It is generally described as gross income or adjusted
gross income (which is minus any deductions
or exemptions allowed in that tax year). Taxable
income includes wages, salaries, bonuses and tips, as
well as investment income and unearned income.

 Taxable income is any type of compensation that

triggers a tax liability.
 There are two kinds of taxable income: Earned
income (salary, wages, tips, bonuses, commissions, etc.)
And unearned income (dividends, interest, rents, alimony,
winnings, royalties, etc.).
 For example, let's assume that Jane works for Company
XYZ. Her salary is $75,000 per year. At the end of the year,
Company XYZ will send a tax form to the IRIS reporting that
it paid Jane $75,000 that year. When Jane fills out a tax
return form to calculate her federal income tax owed, the
$75,000 in earned income, less any deductions, credits, or
exemptions, will be used to calculate her taxable income.
 In a second example, let's assume that Jane has a big
tomato garden in the backyard. Bill, her next door
neighbor, is a hairdresser. Jane and Bill have an
arrangement whereby Bill comes over to cut Jane's hair in
return for two crates of tomatoes. This is bartering, and
even though no cash changes hands, the IRS requires
Jane to report the value of the services she receives as
taxable income and it requires Bill to report the value of
the tomatoes as taxable income.
 It is important to note that income is more than just
the wages you earn at your job. Generally, if you
receive compensation in any form, it's likely to qualify
as taxable income. Some unusual examples include
prize winnings, debtin your name that is forgiven by
a creditor, gifts, payments made for jury duty, strike
benefits, unemployment benefits, and
even money you embezzle.
 Also note that you may be entitled to assorted tax
deductions, credits and exemptions that enable you
to decrease the amount of your income that is
subject to taxation.
 Generally, an amount included in your income is taxable unless it is
specifically exempted by law. Income that is taxable must be reported
on your return and is subject to tax. Income that is nontaxable may
have to be shown on your tax return but is not taxable.
 Constructively-received income. You are generally taxed on income
that is available to you, regardless of whether it is actually in your
possession.
 A valid check that you received or that was made available to you
before the end of the tax year is considered income constructively
received in that year, even if you do not cash the check or deposit it to
your account until the next year. For example, if the postal service tries
to deliver a check to you on the last day of the tax year but you are not
at home to receive it, you must include the amount in your income for
that tax year. If the check was mailed so that it could not possibly reach
you until after the end of the tax year, and you could not otherwise get
the funds before the end of the year, you include the amount in your
income for the next year.
When businesses file their taxes, they do
not report their revenue as income.
Rather, they subtract
their business expenses from their
revenue to calculate their business
income. Then, they subtract deductions
to calculate their taxable income.