ordinary income

noun

1. taxable income, as salary and wages, other than capital gains.

Example Sentences

It’s true that the capital gains tax has typically been lower than the tax on ordinary income, reaching as high as 40% only briefly in the 1970s.

From Los Angeles Times

Overall, however, it’s a relative pittance in postwar terms: The top tax rate on ordinary income was 90% or higher from 1944 through 1963, 70% from 1965 through 1981, and 50% from 1981 through 1986.

From Los Angeles Times

Tax capital gains at less than ordinary income.

From Los Angeles Times

Money distributed through a 401K account will be taxed as ordinary income.

From Encyclopedia.com

A 58-year old person pulling $50,000 from his 401K will owe tax on this as ordinary income.

From Encyclopedia.com