Legal Definitions - aggregate income

Aggregate income refers to the total sum of all income received by an individual, household, or entity from every source over a specified period. This comprehensive figure includes, but is not limited to, wages, salaries, business profits, rental income, investment returns, and any other form of financial gain. It represents the complete financial inflow before deductions or taxes are typically applied.

Here are some examples to illustrate the concept of aggregate income:

• Individual Tax Filing: Sarah works a full-time job, earning a salary. Additionally, she occasionally sells handmade crafts online, generating some extra money, and receives dividends from a small investment portfolio. For tax purposes, her aggregate income would be the sum of her annual salary, the profits from her craft sales, and her investment dividends. This total figure is what the tax authorities would consider when determining her overall tax liability.

• Business Loan Application: A small restaurant, "The Daily Spoon," generates revenue from dine-in meals, catering services, and the sale of branded merchandise. When the owner applies for a business loan to expand, the bank will assess the restaurant's financial health by calculating its aggregate income. This would be the combined total of all revenue streams—food sales, catering fees, and merchandise sales—over a specific period, providing a complete picture of the business's earning capacity.

• Household Eligibility for Benefits: A family consisting of two parents, one working full-time and the other part-time, and an adult child who earns income from a freelance job, applies for a government housing assistance program. The program's eligibility criteria often depend on the household's total earnings. In this scenario, the aggregate income would be the combined salaries of both parents plus the income earned by their adult child, as all these financial contributions collectively represent the household's total financial resources.