Comprehensive Questions
(Frequently Tested) with
Verified Answers Graded A+
What is Gross Income? - Answer: - Any money that you made or worked for that is subject to
tax. Also, all world-wide income from whatever source derived, unless specifically excluded
from taxation by law.
( Money realized in any form whether in money, property, or services.)
Income - Answer: Financial gain derived from labor(work), capital (money), or a combination of
the two. The financial gain derived from labor is generally referred to as "wages".
What is Earned Income? - Answer: Financial gain "that is" received for "services performed."
Some examples of this include wages, commissions, tips, and generally, farming and other
business income.
What is unearned income? - Answer: - Dividends, interests, unemployment that can still be
considered taxable income. (Money received for investment of money or other property such as
interest, dividends, rents, and royalties).
Gross Income Included or Not ? ?
a. Unemployment. Inc.
b. Interests on a state or local bond- No. (Pg. 1.10 There's a Chart)