Taxable Income

Table of Contents

Taxable Income

Taxable Income may have one of the following meanings, depending the context of the term:

1. Individuals. Gross income reduced by deductions allowable in obtaining Adjusted Gross Income and further reduced by the standard deduction or itemized deductions and allowed personal exemptions. Former IRC (check if this IRC provision is current here) §63. 2. Corporations. Total income reduced by total deductions, the net operating loss deduction, and special dividend deductions.

3. Trusts and estates. Total income reduced by allowable expenses, income distribution deduction, and the specific exemption.

4. Other. Any amount of income subject to income tax, such as excess net passive income and built-in gains for an S corporation, and undistributed personal holding company income for a personal holding company.

State Income Tax

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

Description and Definition of Taxable Income

Taxable income is your gross income reduced by all your adjustments, deductions, and exemptions. The amount on which your tax bill is computed.


See Also

Further Reading

Leave a Comment