Gross Income

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DEFINITION of 'Gross Income'

1. An individual's total personal income before taking taxes or deductions into account.

2. A company's revenue minus cost of goods sold. Also called "gross margin" and "gross profit."

INVESTOPEDIA EXPLAINS 'Gross Income'

1. Your gross income is how much you make before taxes. It is the figure people are looking for when they ask how much you gross a month.

2. This is an important number when analyzing a company, it indicates how efficiently management uses labor and supplies in the production process. Keep in mind that gross income varies significantly from industry to industry.

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  3. What deductions, credits and exemptions depend on gross income calculations?

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  4. What is the difference between gross income and earned income?

    Prior to preparing and filing a tax return, do yourself a favor by gaining an understanding of commonly used tax terms including ... Read Full Answer >>
  5. What are the differences among gross income, adjusted gross income and modified adjusted ...

    Taxpayers can ease the pain of preparing tax returns simply by knowing the Internal Revenue Service's (IRS) definitions of ... Read Full Answer >>
  6. What is the difference between gross income and taxable income?

    There are numerous tax terms that are beneficial to know and understand when you are preparing and filing your tax returns. ... Read Full Answer >>
  7. What are the main reasons to obtain a Registered Retirement Savings Plan (RRSP)?

    A Registered Retirement Savings Plan, or RRSP, can be an excellent tax-deferred savings vehicle for Canadians who are looking ... Read Full Answer >>
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