Worldwide Income


DEFINITION of 'Worldwide Income'

The aggregation of a taxpayer's domestic and foreign income. Worldwide income is income earned anywhere in the world and is used to determine taxable income. In the U.S., citizens and resident aliens are subject to tax on worldwide income.

BREAKING DOWN 'Worldwide Income'

The IRS demands to know about all of a taxpayer's worldwide income, taxable or otherwise. Money that is paid to U.S. citizens or resident aliens as wages, independent contractor payments or unearned income from pensions, rents, royalties and investments may all be subject to tax by the IRS. There are some exceptions for U.S. taxpayers who live abroad. See IRS Publication 525 for more information.

  1. Middle-Income Countries (MICs)

    Nations with a per-capita gross national income in 2012 between ...
  2. Expatriate

    An individual living in a country other than their country of ...
  3. Salary Reduction Contribution

    A cash- or deferred-contribution arrangement of an employer-sponsored ...
  4. Foreign Earned Income Exclusion

    The amount of income earned from a foreign source that is excludable ...
  5. Taxable Income

    The amount of income that is used to calculate an individual's ...
  6. Foreign Tax Credit

    A non-refundable tax credit for income taxes paid to a foreign ...
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