Gross Income


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."

BREAKING DOWN '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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  1. How does a bank determine what my discretionary income is when making a loan decision?

    Discretionary income is the money left over from your gross income each month after taking out taxes and paying for necessities. ... Read Full Answer >>
  2. What is the difference between comprehensive income and gross income?

    Comprehensive income and gross income are similar, but comprehensive income is a specific term used on a company's financial ... Read Full Answer >>
  3. What is the difference between taxable income and gross income?

    Gross income includes all of the income a person receives during a year that is not explicitly exempt from taxation, whereas ... Read Full Answer >>
  4. What is the difference in tax liability between gross income and other kinds of income?

    In the United States, gross income is taxed based on the federal income tax rate and state/local tax rates, although many ... Read Full Answer >>
  5. What is the difference between operating margin and gross margin?

    The difference between operating margin and gross margin centers around the difference between operating income and gross ... Read Full Answer >>
  6. What deductions, credits and exemptions depend on gross income calculations?

    The greatest challenge in determining your total tax liability stems from an incomplete understanding of what income figure ... Read Full Answer >>
  7. 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 >>
  8. 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 >>
  9. 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 >>
  10. 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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