Business, Legal & Accounting Glossary
Taxable income is all income that is subject to taxation by the Internal Revenue Service (IRS). Although taxable income is the only type of income that is subject to taxation, reporting of non-taxable income may be required by the IRS. Individuals, businesses, charities, non-profits and even government entities have taxable income.
The IRS maintains an exclusive, rather than an inclusive, definition of taxable income. That is, all income is taxable income unless otherwise stated in the Internal Revenue Code. Some common examples of non-taxable income for individuals are:
The IRS cites the following as examples of taxable income for individuals and businesses:
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This glossary post was last updated: 5th February, 2020