Income

Income is broadly defined as the compensation or value received by an individual or business in exchange for providing goods or services or through investing capital. It represents the money or benefits earned from labor, sales, investments, or other sources of revenue.

Key points about income include:

• It can take many forms such as wages, salaries, commissions, dividends, interest, rental income, business profits, and other financial gains.
• Income is often categorized as gross income (total earnings before deductions), adjusted gross income (gross income minus allowable deductions), and taxable income (the portion subject to taxation after adjustments).
• Income can be earned (from active work or services) or unearned (passive income like investment returns).
• It is a measure of the value created or received over a period, reflecting the production of goods and services in an economy.
• Income is generally taxable by federal and state governments, with some exceptions.
• Besides cash, income can include non-cash benefits or property received, which may also be taxable.

In summary, income is the total economic benefit or compensation received by an entity within a certain timeframe, serving as a fundamental measure of economic activity and personal or business wealth.