Gross Income

According to Internal Revenue Code Section 61 (IRC §61), "gross income" is broadly defined as ALL income from worldwide sources both legal and illegal in any and all forms (cash, property, services) unless explicitly exempt by law from tax.

Gross income includes, but is not limited to:

• Compensation for services, including fees, commissions, and tips;

• Business income;

• Gains from the sale of property;

• Interest;

• Dividends;

• Rents;

• Royalties;

• Alimony & separate maintenance payments;

• Annuities;

• Income from life insurance and endowment contracts;

• Pensions;

• Certain distributions from Individual Retirement Arrangements;

• Income from discharge of indebtedness;

• Distributive share of partnership gross income;

• Income in respect of a decedent;

• Income from an interest in an estate or trust;

• Prizes, awards, rewards;

• Gambling winnings;

• Illegal income;

• Unemployment compensation;

• All of a portion of Social Security Benefits;

• Compensatory damages for NONPHYSICAL injury;

• Punitive damages;

• Jury duty pay;

• Kickbacks, side commissions, push money;

• Fair Market Value of property or services received from bartering;

• Recovery of an amount you deducted in an earlier tax year (Example: state income tax refund);

• Reimbursements by employer under a nonaccountable plan;

• Health insurance premiums of shareholders who own 2% or more of the corporation;

• Group-term life insurance in excess of $50,000;

• Taxes paid for an employee by an employer;

• Distributions from nonqualified deferred compensation plans;

• Payments to statutory employees;

• Nonqualified moving expense reimbursements.

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