Income or loss that constitutes gross income and that does not have the characteristics of capital gain or loss.
Income that is subject to ordinary income tax rates. Common sources of ordinary income include wages, dividends, interest, and retirement plan distributions.
Current income from various sources that is subject to standard marginal tax rates. Ordinary income includes salary/wages, net income from a business, dividends, and interest and capital gains that are reported on 1099 statements.
Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
According to the IRS, the term ordinary income applies to any income that is taxed at regular rates―as opposed to capital gain income. Ordinary income is typically classified into active, passive and portfolio income. For more information, see the "Investment Property Tax Advantages: Deducting Losses" article in the "Real Estate Investing" section.
For Federal Income Tax purposes, ordinary income includes wages, earnings, dividends, interest, and any gain from the sale or exchange of property which is not a capital asset.
Income that is not eligible for special tax rates.
Income subject to tax at full or ordinary rates rather than at favorable capital gains rates.
Reportable income other than capital gain, such as from wages, salaries, interest, dividends, rents, royalties, and the profit realized from the operation of a business. Also see “Business,' “Capital gain,” “Income,” and “Profit.
According to the IRS, all income that is subject to ordinary tax treatment.
Earnings of an investment exclusive of realized and unrealized gains; includes dividends, interest, rents and royalties.
Income other than capital gains.
Income other than a capital gain. For example, ordinary income includes wages, dividends and interest earned on savings.
Income that derives from sources other than capital gain, such as employment, and is not subject to preferential tax treatment.
Defined by the Internal Revenue Code to include salaries, fees, commissions, interest, dividends, and many other items. Taxed at regular tax rates, contrasted with long-term capital gains, which receive more favorable tax treatments.
For tax purposes, this is a category of income that does not enjoy any special tax advantages. For purposes of an annuity contract, the imputed interest and the element of the payment that represents compensation for the termination of the obligation at death are taxed as ordinary income.
Income derived from regular business activities.
Income from normal activities, as distinguished from capital gains earned from the sale of assets.
Under the United States Internal Revenue Code, the type of income is defined by its character. Ordinary income is usually characterized as income other than capital gain. Ordinary income can consist of income from wages, salaries, tips, commissions, bonuses, and other types of compensation from employment, interest, dividends, or net income from a sole proprietorship, partnership or LLC.