Ordinary Income

Ordinary Income means:
income that is fully subject to ordinary income tax rates (e.g., interest income, dividend income, salary income), as distinguished from income that can benefit from the special tax rates for capital gain (loss). The tax rate for capital gains is less than the ordinary income rate. Former IRC (check if this IRC provision is current here) §64.

See also the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.

See Tax Rate and Tax Rate.

Description and Definition of Ordinary Income

Income such as wages, interest, dividends, and net income from a business, that does not qualify to be taxed as a capital gain.

Resources

See Also

Further Reading

• Ordinary Income in the West's Tax Law Dictionary
• Ordinary Income in “A Dictionary of Taxation”