Difference between revisions of "Taxable income"
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'''Taxable income''' is the [[income]] against which [[tax]] rates are applied to compute the tax paid; gross income of businesses or [[adjusted gross income]] of individuals less deductions and exemptions. | '''Taxable income''' is the [[income]] against which [[tax]] rates are applied to compute the tax paid; gross income of businesses or [[adjusted gross income]] of individuals less deductions and exemptions. | ||
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| + | In the United States, the general rule is that all income is subject to tax, unless a specific exemption is granted (such as municipal bonds). Concurrently, deductions are limited to those specifically allowed by law (such as charitable donations or property tax over the standard deduction). | ||
[[Category:Taxation]] | [[Category:Taxation]] | ||
Revision as of 21:43, January 26, 2019
Taxable income is the income against which tax rates are applied to compute the tax paid; gross income of businesses or adjusted gross income of individuals less deductions and exemptions.
In the United States, the general rule is that all income is subject to tax, unless a specific exemption is granted (such as municipal bonds). Concurrently, deductions are limited to those specifically allowed by law (such as charitable donations or property tax over the standard deduction).