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LSDefine

Simple English definitions for legal terms

income

Read a random definition: written directive

A quick definition of income:

Income is money that you get for doing something or investing your money. It can come from working, owning a business, or having money in the bank. The government can tax your income, which means they take a portion of it to pay for things like schools and roads. There are different types of income, like wages, salary, and rental income. When you calculate your income for taxes, you start with your gross income, which is all the money you made. Then you subtract some things, like deductions, to get your taxable income, which is the amount the government can tax.

A more thorough explanation:

Income refers to the money or value that an individual or business entity receives in exchange for providing a good or service or through investing capital. This can include:

  • Wages, salary, commissions, and business profits
  • Interest from securities and bank accounts
  • Tips and rental income
  • Transfer payments, gifts, and inheritances
  • Income in kind, such as the value of free parking provided by an employer
  • The net increase in the real value of a person's assets

The federal government is allowed to tax income under the 16th Amendment, and state governments may also have their own income tax regimes. For example, New York's Tax Code defines taxable income in reference to the federal income tax regime.

For federal income tax purposes, income is divided into three categories:

  • Gross income: includes all income from whatever source derived, such as compensation for services, income from business, gains from property, interest, rents, royalties, dividends, annuities, income from life insurance, pensions, income from discharge of indebtedness, and more.
  • Adjusted gross income: gross income minus allowable deductions.
  • Taxable income: the income subject to government taxation after allowable deductions are taken and adjustments are made.

For example, if someone earns $50,000 in wages and $5,000 in rental income, their gross income would be $55,000. If they have $10,000 in allowable deductions, their adjusted gross income would be $45,000. Finally, if their taxable income is subject to a 20% tax rate, they would owe $9,000 in federal income taxes.

incidents of ownership | income in respect of decedent

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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