Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
Gross income has a different definition for different situations. For example, when referring to salaries and wages, it refers to one thing, but when discussing business profits it means another.
Gross income has a different definition for different situations. For example, when referring to salaries and wages, it refers to one thing, but when discussing business profits it means another.
Gross Income (Salary)
An employee’s gross income is all income earned before taxes. That can include a variety of sources too, including some employees may not realize. This is not the amount an employee takes home, however. Withholding tax and deductions must be taken out before an employee is paid his or her true salary, or his or her net income. Examples of gross income include:
Based on the above, it may seem like almost all revenue sources can be considered gross income. But that is not the case. Examples of exclusions from gross income include:
Gross Profit
Gross income (when referring to the employer side of business) is the amount of revenues that exceed the costs of goods sold. Essentially, it is the amount of income left over after the costs of making a business or corporation’s product is taken into to account. Computing this can show how much can be spent on paying operating costs. Net income for a business is calculated by subtracting all operating expenses from gross income.
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!