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LSDefine
Simple English definitions for legal terms
current income
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A quick definition of current income:
Current income is the money you get from working, owning a business, investing, or receiving gifts. It's the money you expect to receive during a certain period of time. It's different from money you've earned but haven't received yet, which is called accrued income. Current income is important for calculating taxes and budgeting your expenses.A more thorough explanation:
Current income refers to the money or payment that a person receives periodically from their employment, business, investments, royalties, gifts, and other sources. It is the income that is due within the present accounting period.
Examples of current income include:
- Wages or salary earned from a job
- Income earned from a business
- Interest earned from savings accounts or investments
- Rental income from a property
- Dividends received from stocks
These examples illustrate how current income is the money that a person is currently earning or receiving from various sources. It is important to keep track of current income for budgeting and tax purposes.