what is total income

what is total income

4 hours ago 1
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Total income is the sum of all income earned by an individual or organization from all sources before any deductions such as taxes, expenses, allowances, or reliefs are applied. It includes wages, salaries, bonuses, rental income, dividends, interest, business profits, pensions, and other earnings

. In tax contexts, total income often refers to the gross total income before allowable deductions under tax laws. After subtracting these deductions, the remaining amount is sometimes called net or taxable income, which is used to calculate tax liability

. Statistically, total income includes regular and recurring cash receipts such as employment income, investment income, pensions, government benefits, and support payments, but excludes one-time receipts like lottery winnings or capital gains, which are considered wealth rather than income

. In summary, total income provides a comprehensive view of all earnings before any subtractions, serving as the starting point for tax calculations and financial assessments

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