Gross Income

Gross income refers to the total earnings an individual or business receives before any deductions such as taxes, expenses, or contributions are taken out. For individuals, it includes wages, salaries, bonuses, and any other income sources, like rental income or dividends. For businesses, gross income encompasses all revenue from sales or services provided. It serves as a starting point for calculating net income, which is what remains after subtracting these deductions, ultimately reflecting the actual take-home pay or profit. Understanding gross income is essential for personal budgeting and tax calculations.