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

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  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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